Jefferies, Bank of America Merrill Lynch,
SunTrust Robinson Humphrey, Cowen and
Raymond James would lead the offering.
A recent example of Caliburn’s services
was its role in the disarming of improvised
explosive devices in Iraq on behalf of the US
3TATEû$EPARTMENTSû/FlCEûOFû7EAPONSû
Removal and Abatement.
The company was founded by private
INVESTMENTûlRMû$#û#APITALû0ARTNERS ûTHEû
foundation of the business being its 2008
acquisition of engineering and professional
SERVICESûlRMû+ASEMANûINû
Caliburn was carrying US$425.4m of debt
at June 30 versus adjusted Ebitda of
US$50.8m in the latest half.
4HEûCOMPANYûlRSTûlLEDûCONlDENTIALLYûINû
late August.VAPOTHERM, a medical device maker
focused on respiratory diseases, also publicly
lLEDûONû/CTOBERû ûREVEALINGûPLANSûFORûAû
US$57.5m NYSE IPO. Bank of America Merrill
Lynch and William Blair are lead bookrunners.
The company generated revenues of
US$30.7m in the nine months ended
September 30 2018 and had a global installed
base of more than 12,000 units as of that date.‘Square of Brazil’ soars on Nasdaq debut
BRAZIL Big-name support, high growth and fintech appeal drive strong demand for StoneCo IPOHeavyweight backing, a robust growth profile
and the investor appeal of fintech ensured that
Brazilian payments processor STONECO was
able to roll through tough market conditions to
price an upsized US$1.22bn Nasdaq IPO late on
Wednesday.
Global coordinators Goldman Sachs, JP
Morgan and Citigroup priced the sale of 50.7m
StoneCo shares (90% primary, 10% secondary)
at US$24.00 each, above the US$21-$23
marketing range.
Dubbed the “Square of Brazil” in reference to
the US-based fintech upstart, StoneCo went on to
stage an impressive debut on Thursday, surging
30.6% to US$31.35 in its opening session. This
was all the more impressive because it came at a
time when many other US IPOs have been either
heavily restructured or delayed.
StoneCo, whose sales are expected to grow
as much as 70% next year, attracted demand for
roughly 20 times the deal size, one banker close
to the deal said.
The task of underwriters was made easier by
indications of interest at launch from several big-
name investors, most notably Warren Buffett’s
Berkshire Hathaway. Berkshire agreed to take
nearly 30% of the shares offered.With additional commitments from US
mutual fund T. Rowe Price and Walton family
investment vehicle Madrone Capital Partners,
both of which are existing investors (unlike
Berkshire), more than half of the shares offered
were spoken for at launch.
In another strong third-party endorsement of
StoneCo’s prospects, Alibaba-backed payments
arm Ant Financial emerged late in the process
to invest US$100m in a concurrent private
placement.
This resulted in a tweak in the terms just
ahead of pricing to decrease the secondary
selling component of the IPO, but ultimately the
deal was upsized by 6% from 47.7m shares with
the extra shares coming from insiders selling.ENTREPRENEURS
Founded in 2012 by payments entrepreneurs
to take advantage of regulatory changes to
increase payments competition in Brazil,
StoneCo grew revenues 92% to US$164.9m in
the six months ended June 30 2018.
StoneCo came to market in the wake of
January’s US$2.6bn US IPO of rival PagSeguro
Digital, though StoneCo’s IPO terms valued it
at a premium (higher EV/sales and EV/Ebitdamultiples) to reflect its faster growth and higher
Ebitda margins.
“It’s growing faster than PagSeguro and is
generating revenue from sources beyond just
merchant acquiring,” one banker close to the
deal said.
Berkshire Hathaway is not often seen playing
the IPO market, though its StoneCo investment
appeared to result from its connections with
private equity firm 3G Capital (a co-investor in
Kraft Heinz). 3G partners are existing investors
in StoneCo.
Bankers are also seeing StoneCo’s success
as a positive development for the Brazilian IPO
pipeline.
Brazilian stocks have outperformed US stocks
during a difficult October and this year as a
whole, in part due to hopes that this weekend’s
run-off presidential elections will usher in
market-friendly economic reforms.
“Just this past week there were two IPO filings
out of Brazil (Tivit and Banco BMG) so it goes to
show there are a lot of companies just waiting to
see if markets are OK,” a LatAm ECM banker said.
“We expect to see some more Brazilian IPOs
price before the end of the year.”
Anthony HughesECM DEALS: WEEK ENDING 26/10/2018
Stock Country Date Amount Price Deal type Bookrunner(s)
Nufarm Australia 23/10/18 A$303m A$5.85 Follow-on (Primary) Macquarie,UBS
StoneCo Brazil 24/10/18 US$1.22bn US$24.00 IPO (Primary, Secondary) GS, JPM, Citigroup
Innovent Biologics China 24/10/18 HK$3.3bn HK$13.98 IPO (Primary) China Merchants Secs, GS, JPM, MS
Pintec Technology China 25/10/18 US$44m US$11.88 IPO (Primary) Citigroup, DB, GS
Qingdao Haier China 22/10/18 €278.3m €1.05 IPO (Primary) DB,CICC, JPM, UBS
Avast Czech Rep 22/10/18 £144.5m 275p Accelerated bookbuild (Secondary) MS, UBS
Gamida Cell Israel 25/10/18 US$50.0m US$8.00 IPO (Primary) BMO Capital Markets, RBC Capital Markets
Tokyu Fudosan Holdings Japan 22/10/18 ¥50.6bn ¥629 Follow-on (Primary/Secondary) Daiwa, Mizuho, Nomura, MS
Ajman Bank UAE 24/10/18 Dh419.68m Dh1 Rights issue Emirates NBD
EnQuest UK 22/10/18 £107m 21p Rights issue JPM, Bank of America Merrill Lynch
International Public Part UK 43397 £75m 152.5p Follow-on (Primary) Numis
San Miguel Food and Beverage Philippines 43397 Ps34bn Ps85 Follow-on (Secondary) JPM, MS, UBS, DB, GS, BDO, BPI
Capitaland Mall Trust Singapore 43398 S$277m S$2.07 Follow-on (Primary) DBS, JPM
Celltrion South Korea 43396 W895bn W247,000 Follow-on (Secondary) Citigroup, Credit Suisse
Thailand Future Fund Thailand 43392 Bt45bn 4.75% IPO (Primary) BAML, Finansa, JPM, KrungThai Bank, Phatra
Proteostasis Therapeutics US 43396 US$74.3m US$6.75 Follow-on (Primary) Leerink Part, Piper Jaffray, Cantor Fitzgerald
Yeti US 43397 US$288.0m US$18.00 IPO (Primary, Secondary) BAML, MS, Jefferies