CASHmOWûMEANSûNOûPRIMARYûFUNDRAISEûISû
needed, the company said.
Pre-marketing will run for two weeks,
followed by two weeks of roadshows and
bookbuilding.
One banker involved in the deal said the
COMPANYûISûSHOOTINGûFORûAûFREE
mOATûOFû
around 15%, and that the market cap could
be in the high teens or low twenties in
billion US dollar terms.
4HEûFACTûTHATû67ûISûATTEMPTINGûTOûmOATû
4RATONûAGAINûDESPITEûAûPERSISTENTLYûDIFlCULTû
market environment hints at some urgency to
get the deal done, the banker said, and may
explain the pivot to a smaller deal size when a
€5bn IPO had been expected previously.
!ûSECONDûBANKERûSAIDûAûFREE
mOATûTARGETû
WASûNOTûYETûlXEDûANDûCOULDûFALLûBETWEENû
10%-25%, while a third banker said the sizing
ISûLESSûRELEVANTûDUEûTOûTHEûmOATûBEINGûAûSPIN
OFF ûWHICHûGRANTSûMOREûmEXIBILITY
&EEDBACKûONûTHEûlRSTûMORNINGûWASûSTRONG û
as investors try to pick apart Traton’s
business model and understand whether the
overall cycle affects the company, the third
banker said.
Traton is the truck and bus business of
VW, housing its three brands MAN, Scania
and VWCO.
Citigroup, Deutsche Bank, Goldman Sachs and
JP Morgan are global coordinators. Bank of
America Merrill Lynch, Barclays, BNP Paribas, SEB
and UniCredit are bookrunners and
Commerzbank, HSBC, LBBW and Societe Generale
are co-lead managers.
ROCKET-BACKED GLOBAL FASHION
GROUP LAUNCHES FRANKFURT IPO
Emerging market online fashion retailer
GLOBAL FASHION GROUP has started pre-
marketing an all-primary Frankfurt listing
to raise around €300m.
With a typical four-week IPO timetable
planned, pricing could come in mid-June
with the listing likely to complete at the end
of the month.
GFG is headquartered in the UK, but
OPERATESûINûûCOUNTRIESûINû!SIA
0ACIlC û,ATINû
America and the CIS region. The funds will
be used to fuel growth, including
investments in its platform, automation and
DELIVERYûFULlLMENT
It is backed by German start-up incubator
Rocket Internet, which owns around 26% of
the company. The other major shareholder
is Sweden’s Kinnevik with around 34%.
Rocket Internet has been behind a
number of internet retailer IPOs in the past
few years, including German furniture
retailers Westwing and Home24 in 2018,
and more recently Africa-focused
E
COMMERCElNTECHûCOMPANYû*UMIAû
Technologies, which listed in New York in
April.
Although GFG’s customer base is largely
emerging-market-focused, its presence in
Australia and New Zealand means it cannot
be pigeon-holed as a purely emerging
markets business, said a banker working on
the deal. The markets in which it operates
have lower penetration for online retailers.
0ENETRATIONûACROSSû!SIA
0ACIlC û,ATINû
America and CIS is 6%, compared with 15%
in Western Europe, 20% in the US, and 39%
in China.
The deal is expected to attract a range of
investors including tech investors and
generalists, who may compare it to ASOS
and Zalando. A second banker said Zalando
is likely to be the main comp, given its
business structure, which includes selling
third-party brands and a wide customer
demographic.
Founded in 2014, GFG is still making a
loss, and recorded an adjusted Ebitda loss of
€25.5m in Q1, a slight improvement on the
€27.8m Ebitda loss a year earlier.
)TSûlNANCIALSûHAVEûBEENûONûANûUPWARDû
trajectory for the past few years, with Ebitda
losses reduced by nearly two-thirds from
€130.8m in 2016 to €49.8m for the full-year
2018.
&OLLOWINGûTHEûmOAT ûTHEûCOMPANYûISûLOCKEDû
up for 12 months. Shareholders will be
locked up for six months, and for the six
months thereafter will be permitted to sell
up to 20% of their pre-IPO shareholding. The
lVEûLARGESTûSHAREHOLDERSûHAVEûAGREEDûTOû
coordinate if a sale arises in this period.
Berenberg, Goldman Sachs and Morgan Stanley
are global coordinators, and bookrunners
with HSBC.TRITON BAGS €216m IN BEFESA EXITTriton made its exit from BEFESA last
Wednesday evening, cashing in €215.9m
through its third sale this year in the
recycling company.
The deal launched with a price range of
õûTOûTHEûMARKETûCLOSEûOFûõ ûlNALLYûlanding on €34 each, representing a 2.9%
discount to the close. A total of 6.35m shares
were placed with investors, representing
18.6% of the company.
Shares stayed above water last Thursday,
trading up 1.4% to close at €35.50. Strong
CONlDENCEûINûINVESTORûDEMANDûMEANTûNOû
wall-cross preceded the sale.
The book contained 80 lines and the top
10 orders took 70% of the deal. There were
several anchor orders from new and existing
shareholders. The book was international,
with heavy demand from German accounts.
Triton’s lock-up following its most recent
sell-down in Befesa had recently expired. It
last sold shares in early April, selling 4.5m
shares at €37.20 each, and 3m shares in
January at €36.
The January sale followed a long period
during which Triton did not reduce its
HOLDING ûHAVINGûmOATEDûTHEûCOMPANYûINû
November 2017 and sold shares through an
ABB in March 2018.
Citigroup and JP Morgan were bookrunners
ONûTHEûlNALûSALE
On the IPO and two ABBs the top-line
banks were Citigroup, Goldman Sachs and
JP Morgan. January’s sale had Berenberg and
Commerzbank - bookrunners on the IPO -
working alongside Citigroup.ICELAND
MAREL TRADES UP ON EURONEXT
AMSTERDAM DEBUTIcelandic meat processing equipment maker
MAREL made a positive start with its debut on
Euronext Amsterdam on Friday as its shares
gained 5.4%.
Shares opened at €3.85 and closed at €3.90
versus a €4.70 issue price. The intraday high
was €4.0305 and the VWAP €3.9402.
4HEûlNALûDEALûSIZEûWASûõM ûWITHûANû
implied market cap of €2.82bn on
admission. Around 30% was already covered
by cornerstone investors. A total of 90.9m
shares were sold.
If a 15% over allotment option is
exercised, the deal size could reach €370m.
The new shares are fully fungible across
Nasdaq Iceland, where Marel was already
listed and the most actively traded stock,
and Euronext Amsterdam.
The deal was multiple times
oversubscribed, with the top 10 orders
taking 65% and the top 20 orders taking 85%.
Around a quarter of all orders were zeroed, a
banker on the deal said.
Cornerstone investments were secured
before pre-marketing started. BlackRock
invested €63m and Credit Suisse Asset
Management €37m. They own 2.2% and 1.3%
of Marel respectively post-IPO.EQUITIES EMEAEMEA EQUITIES
BOOKRUNNERS: 1/1/2019 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Morgan Stanley 23 4,980.77 11.1
2 JP Morgan 27 3,994.03 8.9
3 Goldman Sachs 21 3,652.60 8.1
4 Citigroup 24 3,245.34 7.2
5 Credit Suisse 18 2,222.07 5.0
6 UBS 13 2,219.17 4.9
7 Barclays 14 1,761.18 3.9
8 BAML 10 1,726.39 3.8
9 Jefferies 16 1,315.40 2.9
10 Carnegie 24 910.80 2.0
Total 338 44,859.95
Including all domestic and international deals and rights issues
Source: Refinitiv SDC code: C4cr