IFR 02.29.2020

TAIWAN

YAGEO GDR WINS APPROVAL

Shareholders have approved YAGEO CORP‘s

plan to sell global depositary receipts in a

deal that could raise about US$1.08bn.

The Taiwanese electronic components

maker announced in January that it planned

to sell up to 80m shares in the form of GDRs.

Based on the company’s closing price of

NT$410 on Friday, the deal could raise some

NT$32.8bn (US$1.08bn).

Yageo plans to use the proceeds for

working capital, to purchase materials

overseas, and for loan repayments and

capital expenditure.

Last November, it announced a plan to

acquire US rival Kemet Corp for US$1.8bn.

The takeover is expected to close in the

second half of 2020.

Citigroup, the sole M&A adviser on the

Kemet acquisition, is also close to the GDR

sale.

Yageo shares slid 7% last Friday but were

still up 22% in the past three months.

EUROPE/MIDDLE

EAST/AFRICA

FRANCE

NACON PRICES IPO TOWARDS TOP OF

RANGE

Gaming company NACON survived the

market turmoil to price its €100m Euronext

Paris IPO on Friday in the upper half of the

range.

Allocations concluded late on Friday after

books closed at 12pm in Paris, after a

dramatic pricing and allocation process

against the worst possible backdrop.

The deal had been accelerated to close

books after just one week on a

combination of strong demand and falling

markets. The wisdom of the decision was

UNDERLINEDûBYûTHEûmOWûOFûORDERSûOUTûOFû

the book on Friday morning. Even so this

WASûDEEMEDûmUFFûANDûONLYûREDUCEDû

oversubscription as the deal remained

four times done at the close with around

100 investors in the book.

Allocations were heavily skewed towards

long-only investors. The top 10 orders took

60% of the deal and the top 20 took around

80%.

French and UK names took 40% each of

the deal with the remaining slice going to

Nordic and DACH investors.

A banker involved described allocations

as “brutal”, with a third of the book

zeroed.

European indices falling several percent

again on Friday morning led to a revision in

planned pricing with an expected €5.70

PRICEûDROPPINGûTOûTHEûlNALûLEVELûOFûõû

with Nacon’s founder willing to forgo

proceeds to reduce aftermarket risk for new

investors.

Several days separate Nacon from its

market debut which is set for March 4.

The IPO gives Nacon a market cap of

õMûONûADMISSIONûANDûAûFREE

mOATûOFû

21.4% pre-greenshoe.

The base deal comprised 16.5m new

shares and a 10% upsize was also exercised,

both covered within hours of books opening

on February 20. There is also a 10% primary

GREENSHOEû!ûBANKERûWORKINGûONûTHEûmOATû

had indicated on Monday that the schedule

would likely be accelerated, and that was

CONlRMEDûONû4UESDAY

Launching with a price range of €4.90-

€5.80 per share, bookbuilding began on

February 20 and was scheduled to wrap up

on March 5.

Berenberg, Gilbert Dupont and Louis Capital

Markets were bookrunners.

SANOFI TARGETS 2022 FLOAT FOR API

UNIT

Pharma company SANOFI is to separate its

active pharmaceutical ingredients business

and list it in Paris, with a decision to be

taken on the move by 2022.

3ANOlûSAIDûTHATûTHEûNEWûCOMPANYûWILLû

rank as the world’s second-largest API

company, with about €1bn in expected sales

BYûû3ANOlûWILLûRETAINûAûSTAKEûOFû

approximately 30% and said it intended the

new business to be debt-free.

Active pharmaceutical ingredients are

the molecules responsible for the

BENElCIALûEFFECTSûUSEDûINûTHEûCOMPOSITIONû

of any drug. The company consists of

3ANOlSû!0)ûCOMMERCIALûANDûDEVELOPMENTû

activities and six of its European API

production sites in Italy, Germany, the

UK, France and Hungary. It is expected to

include 3,100 employees and be

headquartered in France.

3ANOlûSAIDûTHATûTHEû!0)ûMARKETûWASû

growing at 6% per year.

KAZAKHSTAN

KAZMUNAYGAZ AIMS FOR OCTOBER/

NOVEMBER IPO

+AZAKHûSTATEûOILûANDûGASûlRMûKAZMUNAYGAZ

PLANSûTOûmOATûITSûSHARESûINû/CTOBERûORû

November this year, deputy chief

executive Zhakyp Marabayev said on

Tuesday.

Marabayev, speaking at a meeting at the

energy ministry, provided no other details.

Kazakhstan has said it will sell a stake of up

to 25% in the company this year, targeting

US$3bn–$5bn.

MALAWI

AIRTEL MALAWI DEBUTS UP 39.5%

It was worth the wait for investors in AIRTEL

MALAWI, with the subsidiary of London-listed

telecoms business Airtel Africa closing up

39.5% on debut on the Malawi Stock

Exchange.

(AVINGûOPENEDûmATûTOûTHEû-+ûPRICINGû

INûTHEû-+BNû53M ûmOATûTHEûSTOCKû

closed up 39.5% at MK17.71. In total, 1.25m

units changed hands, representing a tiny

fraction of the 2.2bn shares offered in the

IPO.

Following a bookbuild that began on

December 27 and wrapped up on January

31, investors had to wait until mid-February

for the IPO to complete and until Monday

for trading to begin.

International Financing Review February 29 2020 77

EQUITIES EMEA

EMEA COMMON STOCK ISSUER LEGAL ADVISERS

1/1/2020 TO 27/2/2020

No of Total Share

Legal adviser issues US$(m) (%)

Source: Refinitiv SDC code: AX3

1 Bar & Karrer 1 2,402.5 12.3

2 Sullivan & Cromwell 1 635.9 3.3

3 Linklaters 1 250.1 1.3

=3 Webber Wentzel 1 250.1 1.3

5 Cooley 3 235.1 1.2

6 Roschier Advokatbyra 1 198.1 1.0

7 Cuatrecasas 1 163.2 0.8

8 DLA Piper 2 120.0 0.6

9 ENSafrica 1 108.3 0.6

10 Baker Mckenzie 2 107.6 0.6

Total 125 19,503.2

EMEA COMMON STOCK MANAGER LEGAL ADVISERS

1/1/2020 TO 27/2/2020

No of Total Share

Legal adviser issues US$(m) (%)

Source: Refinitiv SDC code: AX4

1 Linklaters 2 2,351.2 12.1

2 Freshfields

Bruckhaus Deringer 2 879.4 4.5

3 Davis Polk & Wardwell 1 250.1 1.3

=3 ENSafrica 1 250.1 1.3

5

Attorneys At Law

Borenius 1 198.1 1.0

6 Baker Mckenzie 3 171.2 0.9

7 Goodwin Procter 3 155.2 0.8

8 Skadden 1 152.0 0.8

9 Covington & Burling 2 119.6 0.6

10 Advokatfirmaet

Thommessen AS 1 94.7 0.5

Total 125 19,503.2

10 IFR Equities and SE 2322 p 73 - 86 .indd 77 28 / 02 / 2020 19 : 13 : 56