8IAMENû-EIYOUûHASûCOMPLETEDûlVEû
rounds of private equity and venture capital
fundraising.XIAMEN TUNGSTEN TO SPIN OFF UNITShanghai-listed Xiamen Tungsten plans to
spin off its new energy materials unit on
Shanghai’s Star market.
The spin-off, XIAMEN TUNGSTEN NEW ENERGY
MATERIALS, produces lithium-ion battery
materials. Provincial-owned parent Xiamen
Tungsten has other businesses in tungsten
molybdenum and rare earths.
Xiamen Tungsten said the divestment
WOULDûHELPûFULLYûREmECTûTHEûVALUEûOFûITSû
lithium-ion battery business, expand the
lNANCINGûCHANNELSûOFûTHEûSUBSIDIARY ûANDû
improve incentives for employees.
8IAMENû4UNGSTENûPOSTEDûAûNETûPROlTûOFû
2MBMû53M ûFORûTHEûlRSTûNINEû
months of 2019, on revenues of Rmb12.7bn,
while the proposed spin-off unit made a net
PROlTûOFû2MBBNûONûREVENUESûOFû2MBBNINDIA
DIPAM HIRES BANKS FOR SHARE SALESIndia’s Department of Investment and
Public Asset Management has hired banks
to manage the sales of 15% stakes in
HINDUSTAN AERONAUTICS (HAL) and BHARAT
DYNAMICS for a maximum Rs31bn (US$423m).
IDBI Capital Markets, SBI Capital Markets and
Yes Bank Securities have been hired for an up
to Rs28bn share sale in HAL.
Elara Capital, IDBI Capital and Yes Bank will
work on the Bharat Dynamics transaction.
The government owns 89.97% of HAL and
87.75% of Bharat Dynamics, and will sell the
shares through a domestic offer for sale in order
TOûINCREASEûTHEûCOMPANIESûFREE
mOATûTOû
HAL shares were down 25% year-to-date as
of Wednesday and Bharat Dynamics has
slipped 37%.
(!,ûWASûmOATEDûINûAû2SBNû)0/ûINûû
at Rs1,215 per share and Bharat Dynamics in
the same year through a Rs9.6bn IPO priced
at Rs428.INDIGO PAINTS PLANS UP TO
US$140m IPOINDIGO PAINTS is planning a US$125m–$140m
IPO launch in the second half of the year,
people with knowledge of the transaction
said.
The IPO is likely to consist of both
primary and secondary shares.
Managing director Hemant Jalan founded
the Pune-based company in 2000. Private
EQUITYûlRMû3EQUOIAû#APITALûISûALSOûANû
investor.Indigo Paints has paint manufacturing
facilities in Rajasthan, Kerala and Tamil Nadu.
Edelweiss, ICICI Securities and Kotak are the
banks on the transaction.BURGER KING INDIA DEFERS IPOBURGER KING INDIA has put its IPO of about
Rs10bn (US$138m) on hold given the weak
stock market conditions, people with
knowledge of the transaction said.
The company was planning to launch the
IPO sometime this month.
Burger King said in a statement it was
deferring the IPO as it is focused on the
health and safety of its employees and
customers in the current environment.
“We have until May to complete the IPO
and therefore are in no rush or face any
imminent deadline to push ahead. We are
very well funded and the decision on the
timing of the IPO will be taken based on the
market environment.”
The company said it had received an
“overwhelming response” from investors.
The 18% fall in the benchmark S&P BSE
Sensex in the month to-date and the poor
lRST
DAYûPERFORMANCEûOFû3")û#ARDSûANDû
Payments is keeping IPO issuers away. SBI
Cards debuted last Monday at Rs681.40,
down 9.7% from the IPO issue price of Rs755.
Rossari Biotech has also deferred its Rs7bn
IPO while Antony Waste Handling Cell
WITHDREWûITSûUPûTOû2SBNûmOATûAFTERûAû
poor response.
Primary shares of Rs4bn and 60m
secondary shares from QSR Asia, an
Everstone Capital entity, were to be sold in
the Burger King IPO. Everstone owns and
operates Burger King restaurants in India
and Indonesia.
CLSA, Edelweiss, Kotak and JM Financial are
the lead managers.PHILIPPINES
CONVERGE ICT HIRES BANKS FOR IPOInternet service provider CONVERGE ICT
SOLUTIONS has hired Morgan Stanley, UBS, BDO
Capital and BPI Capital to work on an IPO of
about US$500m, people with knowledge of
the transaction said.
The IPO is planned for later this year
subject to an improvement in local market
conditions. The benchmark Philippine Stock
Exchange Index is down 38% year-to-date,
making it one of the weakest markets in Asia.
0RIVATEûEQUITYûlRMû7ARBURGû0INCUSûWILLû
be selling shares in the IPO. There will also
be a primary share component.
Warburg Pincus invested US$250m in the
broadband service provider last year in its
lRSTûINVESTMENTûINûTHEû0HILIPPINESLocal businessman Dennis Uy is the
founder of Converge ICT, which is planning
a US$1.8bn nationwide internet network.EUROPE/MIDDLE
EAST/AFRICAAUSTRIA
AMS SHARES HOVER AROUND RIGHTS
ISSUE PRICEShares in sensor maker AMS closed below
their rights issue pricing last Tuesday and
Wednesday, three days into subscription for
the SFr1.75bn (US$1.82bn) fundraising.
Terms were set on March 13 but the 35%
discount to TERP was already erased by the
Tuesday close.
The 189.9m new shares are being offered
at SFr9.20, but the shares touched an
intraday low of SFr8.728 last Tuesday and
more or less the same last Wednesday.
However, the close is more important in
terms of shareholders deciding whether to
participate in the rights issue or not and last
Tuesday the shares ended at SFr9.19. It is
worth noting that rights, while down more
than 50% last Tuesday, closed at SFr0.64
each.
By Thursday’s close, the shares were
TRADINGûABOVEûAGAINûATû3&RûANDûlNISHEDû
on Friday at SFr9.298. The rights had fallen
to SFr0.20 by the Thursday close and further
to SFr0.13 on Friday afternoon.
Subscription began last Monday and runs
until March 30. Shares are offered on a
9-for-4 basis so the new shares represent 69%
of the company post-money.
The underwriting is split across eight
banks, though more than 70% of the risk is
held by global coordinators UBS (36.8%) and
HSBC (34.3%). The rest is split among Bank of76 International Financing Review March 21 2020EMEA EQUITIES
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Including all domestic and international deals and rights issues
Source: Refinitiv SDC code: C4cr1 Credit Suisse 7 3,089.87 13.9
2 Goldman Sachs 13 2,108.02 9.5
3 Morgan Stanley 11 1,873.80 8.4
4 JP Morgan 12 1,555.53 7.0
5 Citigroup 13 1,532.94 6.9
6 Barclays 10 1,467.00 6.6
7 UBS 5 1,285.78 5.8
8 BofA Securities 6 1,257.11 5.7
9 Jefferies 5 878.80 4.0
10 BNP Paribas 6 639.95 2.9
Total 161 22,186.3210 IFR Equities and SE 2325 p 73 - 81 .indd 76 20 / 03 / 2020 19 : 37 : 35