discount to TERP of 67p, based on the 214.3p
close on March 12.
The 55.1% discount is one of the widest
SEENûFORûSOMEûTIME ûBUTûREmECTSûTHATûDeutsche
Bank, JP Morgan and Morgan Stanley are taking
on more risk.
Some of that risk was being dealt with
from Monday morning, when books opened
for sub-underwriting. There was good initial
take-up, helped by the discount, with
participation from existing shareholders
backing their investment and hedge funds
looking at an opportunity.
“They’ve renegotiated the investment by
Stroll and the subsequent rights issue,” said
AûSYNDICATEûHEADûh4HEûBOARDûFEELSûCONlDENTû
that they have mitigated against a range of
possible scenarios. Everyone wants this to
work and we feel we’re at a price where we
are comfortable it will work.”
Aston Martin shares opened on Monday at
188p from the 206p March 13 close, but
were swiftly down 47% at 110p before
climbing back to close at 143.85p. On Friday,
the stock was at 159.25p.
Stroll’s consortium will end up with a 25%
stake in Aston Martin for an overall
investment of £262m.
Existing investors Prestige/Strategic
European Investment Group and Adeem/
Primewagon, holding an aggregate 57.2%
PRE
MONEYûAREûEXPECTEDûTOûlNISHûWITHûû
as Adeem/Primewagon is exercising only
26.5% of its rights.
-ERCEDES
"ENZ ûWITHû ûHASûIRREVOCABLYû
undertaken to vote in favour of the capital
increase and take up its rights in full, as
have other shareholders representing 2.4%
of share capital.
An EGM to vote on the deal will take place
on March 30, which is also the record date.
Subscription runs from April 1-17, with a
result on April 20.WAREHOUSE REIT ABANDONS
FUNDRAISINGWAREHOUSE REIT, which owns and manages
urban and last-mile distribution centres in
the UK, called off a £100m fundraising on
Wednesday blaming market uncertainty
due to the coronavirus outbreak.
The placing was aimed at part-funding an
acquisition pipeline of more than £350m.
Warehouse REIT was offering 89.68m
shares at 111.5p per share in a placing, open
offer, offer for subscription and
intermediaries offer.
Shares in the fund closed last Wednesday
at 80.40p. By last Friday just before 4pm
they were around 82.2p each.
A general meeting was due to take place on
-ARCHûûBUTûHASûBEENûPOSTPONEDûINDElNITELY
The fund’s corporate broker Peel Hunt was
bookrunner on the deal.The fundraising had been expected by the
market since late February when
Warehouse REIT said that it had fully
invested proceeds from its previous
fundraising.
Since the £150m September 2017 IPO,
Warehouse REIT has acquired £321.2m of
assets and manages 98 sites across the UK,
with the portfolio valued on January 31 at
£464.8m.AMERICAS
UNITED STATES
US ECM FACES EXTENDED QUARANTINESome hopeful signs emerged late in the
week that the liquidation phase of the
market sell-off might be nearing an end, but
US ECM is still looking at an extended lay-off
while the coronavirus threat roils the global
economy.
As of early US time on Friday, the S&P
500 was on track to string together its
lRSTûBACK
TO
BACKûSESSIONûGAINSûSINCEû
February 11–12. Yet markets remain
highly volatile intra-day and the equity
benchmark is still down more than 25%
so far this year.
The past week saw only one registered
follow-on of note, a US$60m offering from
ground lease REIT Safehold. Several SPACs
that hoped to price IPOs did not do as
planned.
2ISINGûNUMBERSûOFûCONlRMEDûCORONAVIRUSû
cases in the US alongside greater testing are
likely to remain the focus of the market.
(OWEVER ûMAMMOTHûMONETARYûANDûlSCALû
stimulus may help to stabilise market
conditions.
ECM bankers do not anticipate launching
IPOs in this environment. There is now a
large backlog of companies that would
otherwise have gone public this month.
Another more practical complication for
companies looking to debut on the NYSE is
the exchange’s decision to close its physical
TRADINGûmOORûFROMû-ONDAY
However, the exchange indicated it could
still make arrangements for a designated
market-maker (a human trader) to
physically open the stock.
/NEûRECENTûlLERûTHATûCANûTHEORETICALLYû
launch as early as Monday and might be able
to sidestep the Covid-19 concerns is grocer
Albertsons.
Shares of close comp Kroger have surged
in recent weeks as grocers see a spike in
demand during the current period of mass
self-isolation.SOCAP TWIN SPAC IPOs DELAYEDThe twin IPOs of SOCIAL CAPITAL HEDOSOPHIA II &
SOCIAL CAPITAL HEDOSOPHIA III, the new SPACs
sponsored by tech guru Chamath
Palihapitiya, are mired in a “day-to-day”
holding pattern.
Credit Suisse, sole bookrunner, launched a
one-day bookbuild mid-morning on Monday
in hopes of pricing that evening, only to see
investors pull orders amid a broader market
sell-off. The bank was well oversubscribed
on both deals ahead of the public launch
from earlier pre-marketing.
“On Monday, investor commitments
lasted half a day,” said one banker involved.
“We will come back as soon as things settle
down. We just need a little less volatility.”
The S&P 500 plunged 12% on Monday to
2,386 and volatility spiked by 43% to 82.69,
an all-time high close, as investors sorted
through the economic fallout of the
coronavirus pandemic.
Social Capital II is a US, tech-focused
VEHICLEûSIZEDûATû53MûANDû)))ûISûSIZEDûATû
US$600m and has a similar tech bent
outside the US.
In a sign of investor pushback, Social
Capital revised terms on both deals on
Wednesday to a friendlier one-third warrant
structure, versus the one-quarter warrant
structure originally contemplated.
The delay and deal restructuring
highlight how rapidly secondary markets
have deteriorated in reaction to the
coronavirus pandemic, even for cash
boxes.
Virgin Galactic, the former Social Capital
I, has fallen 56% over the past month to
US$10.49, eating into gains those investors
could have rolled into II and III.
The one-third warrant restructuring is a
further concession that the bull-market
bloom of SPACs, itself a bull market
product, may have run its course.
COLLECTIVE GROWTH, a cannabis-focused
SPAC headed by former Canopy Growth78 International Financing Review March 21 2020US EQUITIES
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Including all domestic and international deals and rights issues
Source: Refinitiv SDC code: C3r1 Morgan Stanley 25 4,176.00 16.3
2 Goldman Sachs 27 3,874.15 15.1
3 JP Morgan 29 2,783.71 10.9
4 BofA Securities 23 2,447.30 9.5
5 Citigroup 17 1,608.42 6.3
6 Jefferies 20 1,248.20 4.9
7 Barclays 13 1,190.74 4.6
8 Cowen & Co 17 1,009.92 3.9
9 UBS 10 887.01 3.5
10 Wells Fargo 14 833.33 3.3
Total 136 25,626.4510 IFR Equities and SE 2325 p 73 - 81 .indd 78 20 / 03 / 2020 19 : 37 : 48