and intermediaries offer closing the same
day. The offering is not underwritten.
Pricing is a 1.8% discount to Wednesday’s
close of 113.5p and a 6% premium to the
NAV per ordinary share on September 30 of
105.2p.
There is provision to upsize to 224.2m
shares, which will increase the fundraising
to £250m.
The placing is subject to clawback from
the open offer and offer for subscription.
Dilution for existing shareholders who
participate in the open offer is 2.9%,
compared with 27.2% for those that do not
take part.
Shareholder approval is required, with an
EGM on March 23 and the result due on
March 24.
The fundraising has been expected since
the company said in late February that it had
fully invested proceeds from its previous
fundraising.
Warehouse REIT, through its investment
ADVISERû4ILSTONEû0ARTNERS ûISûINûEXCLUSIVEûORûlNALû
negotiations regarding acquisitions totalling
£72m, with another £280m of acquisitions in
detailed negotiations. The pipeline has a target
investment yield in excess of 6%.
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.
Corporate broker Peel Hunt is bookrunner.
7AREHOUSEû2%)4ûSHARESûWEREûmATûFORûTHEû
day at 113p on Thursday, and fell below
pricing to 111p late Friday morning.AMERICAS
UNITED STATES
US ECM LEFT WITH NOWHERE TO GOHopes of a March rebound in the US IPO
market have been left in tatters by the
coronavirus-induced sell-off, which has
forced a lengthening list of companies to
defer their plans to go public.
Record label WARNER MUSIC, shoe company
COLE HAAN, industrial technology company
VONTIER and J CREW spin-off Madewell were all
hoping to bring IPOs to market at this time
but have instead opted to wait amid the
heightened volatility of recent weeks.
The past week saw Canadian waste
MANAGEMENTûlRMû'&,û%NVIRONMENTALû
consummate a revamped US$1.5bn NYSE/
TSX IPO alongside a US$775m MCB, though
it was priced below range and fell on its
debut.Notably, GFL brought forward pricing by a
day to take advantage of an early-week rally.
The past week also saw two SPACs, Flying
Eagle Acquisition (US$600m) and LifeSci
Acquisition (US$60m), price IPOs. Bankers
say lower market valuations have improved
the acquisition prospects of SPACs.
Activity in recent weeks has shown that
select sectors/products such as biotechs and
SPACs can still bring deals in this market.
Imara, a clinical-stage developer of a
treatment for sickle cell disease, launched
an up to US$80.1m Nasdaq IPO for pricing
on Wednesday night.
The past week saw a good number of
COMPANIESûlLEûTOûGOûPUBLIC ûGIVINGûTHEMû
mEXIBILITYûTOûLAUNCHûIFûTHEûMARKETûCLOUDSû
clear in the near term.
On the secondary front, the past week
saw US$1.9bn raised from overnight and
marketed follow-ons, up from less than
US$1bn in the prior week but dominated by
a US$1.1bn block sell-down of shares in
drinks maker Keurig Dr Pepper.IMARA LAUNCHES US$80m IPOBiotech IMARA was the only new addition to
the IPO forward calendar by launching an
up to US$80m all-primary stock offering last
week.
The IPO of 4.45m shares at US$16–$18
came right after expiration of the 15-day
viewing period on Monday following last
MONTHSûPUBLICûlLING ûWHILEûTHEûROADSHOWûISû
slightly more compressed than the normal
seven days.
Morgan Stanley, Citigroup and SVB Leerink
expect to price Imara’s IPO after the market
close on Wednesday, March 11.
Though Imara is clearly eager to get
public, biotechs appear somewhat immune
to happenings in the broader market and
remain the most consistent source of alpha
in the IPO market both this year and last
year.
High-end pricing would value the biotech
at just over US$325m.
!FTERûlLINGûCONlDENTIALLYûLASTû!UGUST û
)MARAûCONDUCTEDûPILOTûlSHINGûINû/CTOBER
Last March, Imara secured US$45m from a
Series B round with additional capital
contingent upon achieving a development
milestone. It failed to achieve that
milestone, leaving the biotech with just
US$28.9m of cash at the end of 2019.
However, investors last week agreed to
waive the milestone provision to inject
another US$17.1m via a re-opening of the
Series B.
The IPO valuation represents a 1.45 times
to 1.65 times step-up from Series B
valuation.
Imara will need at least US$82m to
complete two Phase II trials of its lead drugin patients with sickle cell disease and
b-thalassemia.
It expects to report initial data from the
sickle cell trial by the end of this year and
THEûB
THALASSEMIAûTRAILûINûTHEûlRSTûHALFûOFû
2021.
Sickle cell disease and b-thalassemia are
two inherited blood diseases.
Imara acquired the drug being used in
both trials from Danish pharmaceutical
group H Lundbeck. If the drug is approved,
Imara will owe Lundbeck US$35m in
milestone payment as well as royalties on
future sales.
Lundbeck also holds a 10.5% pre-IPO
equity stake as well as a board seat. New
Enterprise Associates (29.8%), OrbiMed
û!RIXû"IOSCIENCEû ûANDû0lZERû
(10.5%) are also notable shareholders.FLYING EAGLE TAKES FLIGHT WITH
UPSIZED US$600m IPOIn the arms race for acquisition capital,
FLYING EAGLE ACQUISITIONûISûmYINGûHIGHERûTHANû
most after securing a mammoth US$600m
on its IPO.
Goldman Sachs and Deutsche Bank, joint
bookrunners on the offering, were able to
bump the offering size from 50m to 60m
units which was priced at US$10.00.
Flying Eagle soared 4% on its NYSE debut
on Friday to US$10.40, subdued for a
traditional IPO, but strong by standards of a
SPAC.
The company is the sixth, and largest,
SPAC backed by Jeff Sagansky. It is headed
by media exec and long-time partner to
Sagansky, Harry Sloan. Eli Baker, an exec on
FOURûOFûTHEûlVEûPRIORû30!#S ûWASûONCEûAGAINû
enlisted as CFO.
Consistent with management pedigree
and earlier successes, Flying Eagle is
aggressively structured as a one-share, one-
quarter warrant. The vehicle has a 24-month
investment horizon, though it has not
OUTLINEDûAûSPECIlCûAREAûOFûFOCUSûFORûInternational Financing Review March 7 2020 83EQUITIES AMERICASEMEA EQUITIES
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or grou p issues US$(m) (%)Including all domestic and international deals and rights issues
Source: Refinitiv SDC code: C4cr1 Credit Suisse 5 2,829.31 14.5
2 Barclays 10 1,464.78 7.5
3 JP Morgan 11 1,456.06 7.5
4 Morgan Stanley 9 1,382.41 7.1
5 Goldman Sachs 10 1,370.92 7.0
6 Citigroup 11 1,286.11 6.6
7 UBS 5 1,285.78 6.6
8 BofA 4 1,039.05 5.3
9 Jefferies 4 873.90 4.5
10 BNP Paribas 5 585.17 3.0
Total 124 19,482.2910 IFR Equities and SE 2323 p 77 - 87 .indd 83 06 / 03 / 2020 19 : 36 : 30