The plastic tank and pipe maker reported
a net profit of Rs312m for the financial year
to March 31 2018 versus Rs252m in 2016/17.
Edelweiss, ICICI Securities and IDFC are the
bookrunners.L&T SELLS SHARES IN UNITLarsen & Toubro has raised Rs17.85bn
(US$252m) through the sale of 10.5m LARSEN
& TOUBRO INFOTECH shares at a floor price of
Rs1,700.
The transaction comprised a base deal of
5.9m shares with an upsize option of 4.6m
shares that was fully exercised. The
institutional tranche was subscribed 318%
and the retail tranche 155%, data on the BSE
show.
The base deal and the upsize option
represent 6.08% of the unit’s share capital.
The floor price was a 5.4% discount to the
pre-deal close of Rs1,797.75.
L&T, which owns 81.08% of the
information technology company, is selling
the shares to increase the free-float. L&T
Infotech’s current free-float is 17%, which
has to be raised to 25% by 2019 to meet stock
market regulations. L&T Infotech shares are
up 69% in the year to-date.
Axis Capital, Citigroup, Goldman Sachs, HSBC
Securities, JM Financial and Motilal Oswal were
the banks on the transaction.
Last month, L&T sold shares in L&T
Technology Services for Rs9.2bn to increase
the free float.IRCON SETS PRICE RANGE FOR IPOState-owned railway infrastructure
engineering and construction company
IRCON INTERNATIONAL is targeting raising up to
Rs4.7bn (US$65m), having set a price range
of Rs470–Rs475 for its IPO.
In a public notice, the company said the
IPO will be open for subscription between
September 17 and September 19.
The government of India, which owns
100% of the company, is selling 9.9m shares,
or a 10.5% stake, in the IPO.
Ircon earned a profit before tax of Rs5.6bn
in the financial year that ended on March 31
2017, versus Rs6.1bn in 2016.
Axis, IDBI Capital and SBI Capital Markets are
the bookrunners.NEW ZEALAND
MACQUARIE TRIMS OCEANIA
HEALTHCARE STAKEMacquarie Group, the largest shareholder in
elderly care company OCEANIA HEALTHCARE, has
raised NZ$105m (US$69m) from a sell-down
of the company’s shares.Macquarie, via its unit Oceania Healthcare
Holdings, sold 95m shares or a 15.6% stake
in Oceania Healthcare at NZ$1.10 each
versus a floor price of NZ$1.08.
The price represents a discount of 3.5%
to the company’s close of NZ$1.14 last
Tuesday.
After the sale, Macquarie owns a 41.65%
stake in the company.
Deutsche Craigs, First NZ Capital and
Macquarie were the lead managers.PHILIPPINES
H20 PLANS FOLLOW-ON OFFER
IN NOVEMBERPHILIPPINE H2O VENTURES is planning to launch
a follow-on offering of up to Ps16bn
(US$299m) in November.
In a draft prospectus filed with the
Securities and Exchange Commission, the
company said it planned to sell 1.78bn
primary shares at an indicative price of up
to Ps9. There is a greenshoe of 267.9m
shares.
The indicative price is a 55% premium to
last Wednesday’s close of Ps5.81. The shares
were down 5% at Ps5.52 last Thursday.As is usually the case in the Philippines,
the final offer price is likely to be below the
indicative price.
H2O is the second Philippine company in
recent times to announce a follow-on offer at
a premium to the traded price. Last month,
San Miguel Food and Beverage announced a
Ps124bn follow-on offer at an indicative price
of Ps140. The indicative price is at a 44%
premium to last Thursday’s traded price of
Ps97. Bankers on that transaction told IFR
that the final price was likely to be lower
than the Ps140 in the filing.
H2O Ventures, which is being renamed
PH Resorts Group Holdings, is selling the
shares to fund its casino development
programme.
China Banking and CLSA are the
underwriters of the follow-on offer.SINGAPORE
ASCENDAS REIT RAISES S$452mASCENDAS REAL ESTATE INVESTMENT TRUST has
raised S$452m (US$329m) through the sale
of 178m shares at S$2.54 apiece, towards the
bottom of the S$2.528–$2.606 indicative
range.International Financing Review September 8 2018 85EQUITIES ASIA-PACIFIC
IPO points to weak sentiment
n VIETNAM Vinalines raises a fraction of D4.9trn target
Sentiment in Vietnam’s equity capital market has
nosedived, judging by the response to the IPO
of state-owned VIETNAM NATIONAL SHIPPING LINES
(Vinalines), which raised just D54bn (US$2.32m)
out of the original target of D4.9trn (US$210m).
Concerns over emerging markets have
weighed on the Vietnamese stock market and
high profile IPOs such as Vietnam Technological
and Commercial Bank (Techcombank), Vinhomes
and Yeah1 Group this year, and these worries
again discouraged local and foreign investors
from buying the IPO shares.
Vinalines sold 5.43m shares at an average
price of D10,002, data on the Hanoi Stock
Exchange show, as against the target of 488.8m
shares. The US-China trade war was also a factor
in the disappointing fundraising because of its
likely effect on the shipping industry.
Interest was muted despite Vinalines’ strong
earnings last year. The company earned a net
profit of D748bn in 2017, up 92% from 2016, after
suffering losses in the early 2010s when several
of its executives were jailed for mismanagement
and embezzlement.
Two institutions and 39 individuals were allocated
the shares. Foreigners were allocated 6,200 shares.The shares will be listed on local stock
exchanges within three months.
Saigon Securities was the bookrunner.
The Vietnam Index is down 1.6% year-
to-date, following a gain of 50% last year.
Techcombank’s shares are down at D26,000,
compared with the IPO price of D128,000,
Vinhomes is trading at D105,900 versus the
IPO price of D114,700, and Yeah1 Group is at
D224,300 versus the IPO price of D300,000.
All the companies sold shares earlier this year
and were expected to trigger massive interest
in the Vietnam market.
High-end Vietnamese property developer
Vinhomes raised D30.7trn through its IPO in
May in what is Vietnam’s largest ever equity
capital market transaction. Techcombank
raised D21trn and Yeah1 D2.35trn.
The Vinalines share sale is part of the
Vietnamese government’s plan to sell stakes in
more than 64 state-owned firms this year. The
government is raising funds to finance its fiscal
deficit, which is nearing the mandated 65%
of gross domestic product. So far, it has sold
stakes in close to a dozen companies.
S Anuradha10 Equities and SE 2250 p81-98.indd 85 07/09/2018 20:19:32