IFR International - 28.07.2018

-ERITûMAKESûSINGLEûDEVICESûTHATûAREûUSEDû
BROADLYûINûSURGERYûANDûMEDICALûPROCEDURES
)TûEXPANDEDûITSûPRODUCTûSUITEûINû&EBRUARYû
WHENûITûACQUIREDû"ECTONû$ICKINSONSûLINEûOFû
BIOPSYûPRODUCTSûFORû53M
4HEûINVESTMENTûISûPAYINGûOFF
-ERITSûSECOND
QUARTERûSALESûOFû
53M ûUPûFROMû53MûINûTHEûSAMEû
period last year, include sales from the
ACQUIREDûPRODUCTS
Cancer diagnostics company VERACYTE
TOPPEDûOFFûWITHû53MûOFûNEWûEQUITYûONû
BETTERûTHANûEXPECTEDûQUARTERLYûRESULTS
Leerink Partners and Wm Blair PRICEDûMû
SHARESûATû53ûONû7EDNESDAYûNIGHT
3ALESûOFû6ERACYTESûGENOMICûCANCERûTESTSû
WEREûUPûûTOû53MûINûTHEûSECONDû
QUARTER
The company has also reduced its cash
BURNûRESULTINGûINûAûNETûLOSSûOFûûCENTSûAû
SHARE ûAûûIMPROVEMENTûOVERûANALYSTSû
CONSENSUSûOFûAûLOSSûOFûûCENTS

NETGEAR TUMBLES ON ARLO
TECHNOLOGIES SPIN-OFF

NETGEAR had enjoyed a rise in its share price
on the impending spin-off of its home
security unit, ARLO TECHNOLOGIES, but
investors sent Netgear shares crashing by
ûTOû53ûAFTERûTHEû)0/ûWASû
LAUNCHEDûONû-ONDAYûMORNING
.ETGEARûISûSEEKINGûAûPUBLICûVALUATIONûOFû
53BNnBNûFORû!RLOûBASEDûUPONûTHEû
)0/ûTERMS ûAûHEFTYûCHUNKûOFû.ETGEARSûOWNû
53BNûMARKETûVALUE
Bank of America Merrill Lynch, Deutsche
"ANKûANDû'UGGENHEIMû3ECURITIESûAREû
MARKETINGûMûSHARES ûABOUTûûOFûTHEû
COMPANY ûATû53
ûFORûPRICINGûONû
!UGUSTû
“The target valuation for Arlo was not
KNOWNûUNTILûTHEû)0/ûLAUNCHED vû(AMADû
Khorsand, a research analyst with BWS
&INANCIALûTOLDû)&2ûh3OMEûINVESTORSûSETûTHEIRû
EXPECTATIONSûTOOûHIGHv
)NVESTORSûBEGANûBUILDINGûOUTûTHEIRû
positions in Netgear after the Arlo spin-off
WASûANNOUNCEDû.ETGEARûSHARESûHADûRUNûUPû
SOMEûûAHEADûOFûTHEûlLINGûTOû53
h4HESEûWEREûNOTûLONG
TERMûHOLDERS vû
SAIDû+HORSANDûh4HEREûISûPROBABLYûVERYû
little Netgear could have done to prevent
THEûSELL
OFFv
4HEûSPIN
OFFûISûSTRUCTUREDûTOûBEûTAX
FREEû
and Netgear intends to distribute the rest of
ITSû!RLOûSHARESûTOûSHAREHOLDERSûûDAYSû
AFTERûTHEû)0/ ûTHOUGHû!RLOûEXECUTIVESûANDû
DIRECTORSûWILLûBEûSUBJECTûTOûTHEûSTANDARDû
DAYûLOCK
UP
.ETGEARûEXPECTSûTOûINCURû53MûINûONE
TIMEûCOSTSûANDûLOSTûSYNERGIESûFROMûTHEûSPLITû
!RLOûmASHEDûITSûPRELIMINARYûlNANCIALûRESULTSû
FORûTHEûTHREEûMONTHSûENDEDû*ULYûûINûTHEû
PROSPECTUS

4HEûCOMPANYûEXPECTSûTOûREPORTûQUARTERLYû

REVENUEûOFû53MnMûVERSUSû

53MûINûTHEûPREVIOUSûQUARTERûANDû

53MûINûTHEûSAMEûPERIODûLASTûYEAR

!RLOûHASûMOREûTHANûMûREGISTEREDûUSERSû

INûMOREûTHANûûCOUNTRIESûANDûHOLDSûAûû

MARKETûSHAREûINûTHEû53ûCONSUMERûNETWORKû

CONNECTEDûCAMERAûSYSTEMSûMARKET

CANADA

STELLA-JONES’ PARENT BREAKS TIES

3TELLAû*ONESû)NTERNATIONALûCASHEDûOUTûITSû

ENTIREûSTAKEûINû#ANADIANûFORESTRYûCOMPANYû

STELLA-JONESûINûAû#Mû53M û

SELLDOWNûOVERNIGHTûONû4UESDAY

3OLEûBOOKRUNNERûTD SecuritiesûSOLDûMû

SHARESûINûAûBOUGHTûDEALûATû#ûAûSIZABLEû

ûDISCOUNTûTOûTHEû#ûLASTûSALEûONû

4UESDAY

TD acted as placement agent on the sale

OFûANOTHERûMûSHARESûINûAûCONCURRENTû

PRIVATEûPLACEMENTûATûTHEûSAMEûPRICE

"RITISHû#OLUMBIAû)NVESTMENTû

-ANAGEMENTû#AISSEûDEûDEPOTû'0)û#APITALû

/-%23ûANDû#%/û"RIANû-C-ANUSû

PARTICIPATEDûINûTHEûPRIVATEûPLACEMENT

4HEûCOMBINEDûMûSHARESûREPRESENTEDû

ALLûOFûPARENTû3TELLAû*ONESû)NTERNATIONALSû

REMAININGûSTAKE

3TELLA

*ONESûSHARESûCLOSEDû7EDNESDAYû

TRADINGûONûTHEû438ûATû#

)NûCONJUNCTIONûWITHûTHEûSELLDOWNû3TELLA

*ONESûPRE

ANNOUNCEDûSECOND

QUARTERûEXPECTEDû

NETûINCOMEû%BITDAûANDûSALESûOFû#Mû

#MûANDû#MûRESPECTIVELY

3TELLAû*ONESû)NTERNATIONALûISûAûPRIVATELY

HELDû,UXEMBOURG

BASEDûVEHICLEûOFû*AMESû

*ONESûû3ONS

CHILE

MALLPLAZA BRINGS LIFE TO LATAM

EQUITY MARKET

MALLPLAZA brought some life to quiet Latin

!MERICANûEQUITYûCAPITALûMARKETSûWITHûAû

53M

EQUIVALENTû)0/ûTHEûLARGESTû

OFFERINGûOUTûOFû#HILEûINûYEARS

4HEûALL

SECONDARYûSTOCKûSALEûWASûFORCEDû

UPONû-ALLPLAZAûTHEûLARGESTûMALLûOPERATORûINû

#HILEûAFTERûTHEûFOUNDINGûFAMILIESûEXERCISEDû

REGISTRATIONûRIGHTSûTOûDIVERSIFYûTHEIRûlNANCIALû

HOLDINGSûBANKERSûINVOLVEDûINûTHEû

UNDERWRITINGûTOLDû)&2

JP Morgan, Morgan Stanley and BanChile, the

global coordinators on the deal, placed

MûSHARESûATû0SûEACHûTHEûLOWERûENDû

OFûAû0Sn0SûMARKETINGûRANGEû

7HILEûTHEûLISTINGûISûONûTHEû3ANTIAGOû3TOCKû

%XCHANGEûTHEYûPLACEDûSHARESûWITHû

INTERNATIONALûACCOUNTSûONûAû!ûBASIS

4HEûSTOCKûWASûTRADINGûEARLYûONû&RIDAYûATû

0SûONûVOLUMEûOFûMûSHARES

"ROADERûINTERNATIONALûMARKETINGûANDûAû

BULGE

BRACKETûSYNDICATEûOFûUNDERWRITERSû

contributed to a successful outcome, even

THOUGHûFOREIGNûINVESTORSûTOOKûDOWNûJUSTûû

OFûTHEûDEALû4HEûOFFERINGûWASûSEVEN

TIMESû

OVERSUBSCRIBEDûBANKERSûTOLDû)&2

#HILEûHASûNOTûSEENûANû)0/ûANYWHEREûNEARû

THISûLARGEûSINCEûûWHENûCONSTRUCTIONû

lRMû)NVERSIONESû,Aû#ONSTRUCCIONûRAISEDû

53MûEQUIVALENTûACCORDINGûTOû4HOMSONû

2EUTERSûDATA

A high valuation targeted by the selling

shareholders was a source of investor

PUSHBACKûPARTICULARLYûAMONGûFOREIGNû

ACCOUNTS

“While there was international interest,

it would have been more if the valuation

had more of a traditional discount [seen in

OTHERû,AT!Mû)0/S=vûSAIDûONEûOFûTHEû

BANKERS

-ALLPLAZAûLOOKEDûEXPENSIVEûRELATIVEûTOû

#HILEANûPEERû0ARQUEû!RAUCOûASûWELLûASû

against other LatAm mall operators,

ESPECIALLYûTHOSEûINû"RAZIL

0ARQUEû!RAUCOûTRADESûATû

TIMESû%6

TO

û%BITDAû"RAZILIANûMALLûOPERATORSû"2û

-ALLSûANDû)GUATEMIû%MPRESAûDEû3HOPPINGû

#ENTERSûFETCHûJUSTûûANDû

TIMESû

RESPECTIVELY

“While the quality of the asset is high,

"RAZILûISûTRADINGûATûAû

TIMESûMULTIPLEvûSAIDû

THEûBANKERûh4HEYûALWAYSûRECOGNISEDûTHEû

DEPTHûOFûTHEûLOCALûMARKETûWOULDûBEûTHEû

PRIMARYûDRIVERv

Even so, getting any LatAm deal done

these days is seen as an achievement in itself

following the recent rout in the Latin

!MERICANûMARKET

)Nû"RAZILûALONEûNINEû)0/SûHAVEûBEENûPULLEDû

VERSUSûFOURûSUCCESSFULûDEALSûTHEûBANKERûSAID

“The issue is that volatility in Latin

America has been higher than in other

REGIONSvûSAIDûTHEûBANKERûh9OUûCANûSEEûWHYû

ITûISûHARDûTOûRAISEûCAPITALv

-ALLPLAZASûDEALûCOMESûONûTHEûHEELSûOFûANû

ALL

SECONDARYûSTOCKûSALEûFROMû#OLOMBIASû

Grupo Energia Bogota, which also was

MOSTLYûPLACEDûAMONGûLOCALûACCOUNTS

#REATEDûûYEARSûAGOû-ALLPLAZAûHASûGROWNû

its operations across the Andean region and

now has 20 commercial centres in Chile,

0ERUûANDû#OLOMBIA

-ALLPLAZAûREPORTEDûAûPROlTûOFû0SBNû

53M  ûONûREVENUEûOFû0SBNû

53M  ûINûTHEûTRAILINGûûMONTHSû

ENDEDû-ARCHûûACCORDINGûTOûAûPRESENTATIONû

ONûTHEûCOMPANYSûWEBSITE

Selling shareholders were three families

THATûWISHEDûTOûDIVERSIFYûTHEIRûINVESTMENTS

4HEû)0/ûOFûûOFûTHEûCOMPANYûLEFTûTHEû

SELLINGûSHAREHOLDERSûWITHûABOUTûûOFûTHEû

company, with Chilean retailer Falabella

CONTINUINGûTOûOWNûJUSTûUNDERû