MALAYSIA
ROBI SUBMITS IPO APPLICATIONROBI AXIATA, a 68.69%-owned subsidiary of
Malaysia’s Axiata Group, has submitted an
application for a Tk5.24bn (US$62m) listing
to the Bangladesh Securities and Exchange
Commission.
It plans to issue 523.7m new shares, or
10% of the expanded capital, at Tk10 each in
the fourth quarter. The shares will be listed
on the Dhaka Stock Exchange and the
Chittagong Stock Exchange.
Axiata’s shareholding will be reduced by
6.9% as a result of the IPO.
Robi provides mobile and internet
services in Bangladesh and is the country’s
second-largest mobile network operator
with 49 million subscribers as of the end of
December 2019. The proceeds from the IPO
will be used to expand its telecom network.
Robi’s other shareholders are Bharti
International Singapore (25%) and Japan’s
NTT Docomo (6.31%).
CIMB is adviser to Axiata and IDLC
Investments has been appointed by Robi as
the issue manager for the listing.SINGAPORE
UNITED HAMPSHIRE IPO
OVERSUBSCRIBEDThe institutional tranche of UNITED HAMPSHIRE
US REIT‘s US$324m Singapore Exchange real
estate investment trust IPO was multiple
TIMESûSUBSCRIBED ûWITHûTHEûTOPûlVEûINVESTORSû
getting more than 50% of the deal.
Demand for the shares came from
international long-only investors, sovereign
funds, private banking clients and hedge
funds. Allocations were skewed towards long-
only investors and private banking clients.
The institutional books closed last Monday.
The retail offer runs from March 4 to March
10 and the shares start trading on March 12.
4HEû2%)4ûISûSELLINGûUNITSûATûAûlXEDûPRICEûOFû
US$0.80 each, which translates into a yield
of 7.4% for 2020 and 7.6% for 2021.
Cornerstone investors are putting in up to
US$240m, or 74% of the deal. They are: United
Overseas Bank (on behalf of private banking
clients), Golden Sun China, Kuang Ming
Investments, Kasikorn Asset Management,
Phillip Securities, Helen Chow (director of
Wing Tai Property), UBS (on behalf of private
banking clients), Chiu Hong Keong and Khoo
Yok Kee (founders of Malaysian piling and
foundation specialist Pintaras Jaya), Credit
Suisse (on behalf of private banking clients),
Bangkok Life Assurance and HSBC (on behalf
of private banking clients).Davinia Investments and Steamboat
Apollo, existing investors of the funds that
currently own the assets, are rolling over
their investments into the publicly-listed
REIT by buying units for a total US$13.3m.
The US dollar-denominated REIT
comprises 22 US-based grocery stores and
SELF
STORAGEûFACILITIESû4HISûISûTHEûlRSTûTIMEû
that such assets will be listed on SGX.
UBS, United Overseas Bank and UOB Kay Hian
are joint global coordinators and
bookrunners with Credit Suisse and HSBC.
Asset manager UOB Global Capital, a
subsidiary of Singapore’s United Overseas
Bank, and US-based Hampshire US Holdco
are the joint sponsors and will each own a
9% stake in the REIT.EUROPE/MIDDLE
EAST/AFRICADENMARK
BAVARIAN NORDIC SETS RIGHTS ISSUE
TERMS IN TRICKY MARKETDanish biotech BAVARIAN NORDIC has set terms
on a DKr2.82bn (US$421.9m) fully
underwritten rights issue that is due to
complete by the end of March.
Bavarian’s rights issue will comprise 25.9m
shares sold on a 4-for-5 basis at DKr109 each,
a 37.6% discount to TERP of DKr174.67.
Rights trading begins on March 10 and
closes March 23, with subscription running
from March 12-25. A result will be published
on March 27.
4HEûBIOTECHûlRMûlRSTûmAGGEDûTHEûRIGHTSû
issue in October, reiterating its intention to
tap shareholders for cash in February.
Bavarian Nordic hasn’t raised cash since 2007
when it carried out a DKr465m rights issue.
The fundraising is to repay a €185m bridge
loan used to acquire the manufacturing and
global rights to two commercial vaccines
from GlaxoSmithKline in December, for
which it paid €307.6m upfront.
Citigroup and Nordea are bookrunners and
underwriters on the rights issue, alongside
co-lead manager Danske Bank and co-
manager Needham & Company.
Shares in Bavarian Nordic closed down 4%
on Friday at DKr218.10.
Bavarian shares are up nearly 50% over
the past 12 months, despite falling 16% since
February 20.TRICKY TIME FOR RIGHTS ISSUES
Bavarian Nordic is coming to market at time
when rights issues are looking relatively
risky.UK shopping mall operator INTU had to
abandon hopes of raising up to £1.5bn of
equity last week that would have paid down
debt. The company’s stock has been on a
downward path for years and the failure to
secure a rights issue led to another collapse
in the shares as its market capitalisation fell
to less than £70m.
Bonds issued by French steel pipe maker
VALLOUREC have lost more than 10 points in
the past two weeks on worries that the
company’s upcoming €800m rights issue is at
risk. Vallourec’s deal is due to launch in Q2
and is underwritten by global coordinators
BNP Paribas, Morgan Stanley, Natixis and Societe
Generale and bookrunner Commerzbank but
terms have not yet been set.
When the rights issue was outlined two
weeks ago Vallourec’s market cap was €1bn;
it has since fallen by over one-third.
UK carmaker ASTON MARTIN LAGONDA is
gearing up to launch a £317.2m rights issue,
with pricing of 207p per share representing
a discount to TERP of 36.3% at
announcement. Subscription will start on
March 18.
As of Friday’s close Aston’s share price
had dropped to 265.9p, 32% lower than the
February 26 close, the night before Aston
announced terms.
Oil company PREMIER OIL said in January it
planned to raise US$500m in a placing and
rights issue to part-fund two acquisitions in
Q2.
But Premier Oil said alongside its full-year
results that its forecast at the time assumed
an oil price of US$65 per barrel in 2020 and- On Friday Brent crude had plummeted
to US$46.40 a barrel, the lowest level since
late 2016. Its shares have fallen 48% since
announcing the acquisitions.
EMEA rights issue volume stands at
US$1.04bn so far this year, according to
2ElNITIVûDATA ûMARGINALLYûDOWNûFROMûTHEû
same period in 2019 when rights issues up
until March 6 had raised US$1.24bn.
FRANCE
GAMING COMPANY NACON POWERS
UP ON EURONEXT PARIS DEBUTShares in gaming company NACON continued
to be resilient in the face of market
uncertainty, rising on debut on Wednesday
following its €100m IPO.
3HARESûOPENEDûmATûTOûTHEûõû)0/ûPRICEû
and closed up 4% at €5.72.
Nacon priced its IPO on February 28 in the
upper half of a €4.90-€5.80 price range, with
the only real concession to the market
backdrop being a shift on the day away from
planned €5.70 pricing. The bookbuild had
been shortened, with heavy demand leading80 International Financing Review March 7 202010 IFR Equities and SE 2323 p 77 - 87 .indd 80 06 / 03 / 2020 19 : 36 : 29