A minimum of 20% of the IPO will be
offered to Kazakh investors, with shares also
listing on the Astana International Exchange.
Final pricing is expected on November 13,
and unconditional trading of the GDRs is
due to commence on November 16.
Credit Suisse and JP Morgan are joint global
coordinators and joint bookrunners with
CICC, Halyk Finance and Mizuho International.
ROMANIA
ELECTROGROUP INFRASTRUCTURE
CALLS TIME ON IPO
ELECTROGROUP INFRASTRUCTURE threw in the
towel on its up to US$100m Bucharest IPO
on Tuesday.
4HEûmOATûHADûBEENûONûHOLDûFORûJUSTûOVERûAû
week following the end of pre-marketing.
A banker involved said that the company
had no immediate need for cash and would
look again at its options next year.
Erste Group and Wood & Co were joint
global coordinators and joint bookrunners
with Banca Comerciala Romana and BRD Group
Societe Generale.
SWITZERLAND
ARYZTA SETS TERMS AFTER NARROW
APPROVAL VOTE
Following a narrow vote by shareholders on
Wednesday, bakery business ARYZTA has set
terms for a SFr900m (US$897m) rights issue.
The capital raise has already faced
opposition from its largest shareholder,
Cobas Asset Management, which has a
ûSTAKE ûACCORDINGûTOû2ElNITIVûDATA û
and squeaked through the AGM approval on
Wednesday, with 52.88% voting in favour of
the fundraising and 46.98% against.
Cobas had said that Aryzta was painting
shareholders to support the excessively
large and dilutive capital increase”. Cobas
had suggested an “unduly grim picture of
the current situation with the sole intent to
convince a €400m capital increase and at
least €250m of asset disposals.
Aryzta is several months into a four-year
€1bn deleveraging plan, including €450m of
asset disposals, and a targeted €800m capital
increase (now around €790m given the
current exchange rate) is in addition to the
õBNûDELEVERAGINGûALREADYûIDENTIlED
Aryzta shares had dropped more than 75%
from the beginning of the year to
Wednesday night’s close of SFr9.384. Aryzta
stock closed on Thursday at SFr7.506.
The hope is now that the transaction is
progressing - despite the close approval vote- shareholders will opt to stand their corner
and subscribe rather than face dilution.
The company is offering 900m new shares
on a 10-for-1 basis at SFr1, a 43.3% discount
to TERP based on the Wednesday close.
The record date is November 6, with
rights trading running from November 7
through to November 13 and subscription
lNISHINGûONû.OVEMBERû
The capital raise is fully underwritten,
with Bank of America Merrill Lynch and UBS as
process banks and joint global coordinators
with Credit Suisse, JP Morgan and HSBC. Mizuho
International, Rabobank and Credit Agricole are
joint bookrunners.
UK
BIOPHARMA CREDIT RAISES US$305m
AND DOUBLES PLACING TARGETUK-listed fund BIOPHARMA CREDIT raised
US$305m in a placing, more than double its
original target, joining a list of several UK-
listed funds upsizing placings despite
current market volatility which has killed
off several European IPOs in recent weeks.
Biopharma Credit initially aimed for
US$150m, but the strong response from
investors led it to increase this to US$200m,
WITHûlNALûDEMANDûEVENûOUTSTRIPPINGûTHEû
INmATEDûGOAL
A total of 297.6m new shares were sold
for US$1.025 each, representing a 2.85%
premium to the ex-dividend September 30
net asset value. Shares closed on Thursday at
US$1.035.
The 50-line order book was mainly
populated by long-only specialist investors
bringing sticky, long-term money, a banker
on the deal said. All were from the UK.
Biopharma’s majority shareholder
Invesco Asset Management invested
US$10.4m in the placing.
While the deal was upsized for a second
time, some investors were scaled back to
protect aftermarket demand.“Generalist funds liked this fund’s defensive
exposure,” the banker said. “It has very stable
revenue streams backed by royalties.”
The banker said the current market
climate is likely to have stirred up some
extra demand for highly defensive
investment funds, but only up to a certain
point given their generally niche nature.
Last week infrastructure fund INPP raised
£116m in a placing, 55% more than its target
of £75m. A week earlier, Smithson
Investment Trust raised £822.5m after
aiming for £250m, and John Laing
Environmental Assets Group picked up
£105m the same week, more than double its
initial £50m goal.
JP Morgan was global coordinator for
Biopharma Credit and joint bookrunner
with Goldman Sachs and Canaccord Genuity.ORCHARD PLANTS ROOTS WITH
NASDAQ IPOORCHARD THERAPEUTICS followed up a US$150m
Series C round in August with a US$200m raise
on its IPO, though it relied on many of the same
investors on both the private and public rounds.
While the IPO was described as “club-like”
placement, by one banker involved in the
underwriting, it is worth noting that the C
round saw participation from more than a
dozen institutions.
JP Morgan, Goldman Sachs and Cowen placed
14.28m shares at US$14.00, the low end of
the US$14–$16 marketing and increase from
13.33m shares.
The pricing represented a 1.4-times
step-up in valuation from the crossover
round, which launched at US$100m but
increased to US$150m on strong demand.
/RCHARDûCLOSEDûITSûlRSTûDAYûOFûTRADINGûmATû
to the US$14 issue price.
Yet the opening cross on 313,264 shares
was struck at US$17.00, near the later high
of US$17.25.
Orchard fetched a US$1bn-plus valuation.
This is impressive for a company that
jumpstarted its operations by acquiring
GlaxoSmithKline’s gene therapy platform in
April.
It paid GSK £10m in cash and a 19.9% equity
stake for global rights to the platform. The
lead drug is approved in the EU as a treatment
FORûSEVEREûCOMBINEDûIMMUNODElCIENCY ûALSOû
known as “the bubble boy disease.”
Orchard intends to seek FDA approval in- Its US$400m of cash is enough to keep
it well funded through the end of 2020.
THE RESTAURANT GROUP SLUMPS ON
WAGAMAMA ACQUISITIONTHE RESTAURANT GROUP has proposed a £315m
rights issue to partially fund its acquisition
of restaurant chain Wagamama.EQUITIES EMEAEMEA EQUITIES
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 JP Morgan 56 12,908.16 9.7
2 Goldman Sachs 58 11,799.36 8.8
3 Morgan Stanley 50 8,126.18 6.1
4 Citigroup 45 7,485.46 5.6
5 Credit Suisse 34 6,554.62 4.9
6 UBS 30 6,145.04 4.6
7 BAML 31 5,956.56 4.5
8 Deutsche Bank 37 5,694.03 4.3
9 Barclays 35 4,563.21 3.4
10 Investec 25 3,687.41 2.8
Total 805 133,377.29
Including all domestic and international deals and rights issues
Source: Refinitiv SDC code: C4cr