plans perturbed by weak stock market
conditions. Last Thursday, online services
platform Property Exchange Australia
(PEXA) delayed an ASX IPO of up to A$862m
(US$610m) due to market volatility.
Adding to the negativity, Coronado
Global Resources, a newly ASX-listed
coal miner, slashed its IPO size by 33% to
A$774m. Despite pricing a smaller deal at
the bottom of the indicative price range, its
shares fell 10% on their trading debut last
Tuesday.
People close to the deal have told IFR that
Yancoal’s Hong Kong share sale could raise
about US$500m–$650m. Yancoal’s shares in
Australia have dropped more than 17% as of
last Friday since it started pre-marketing for
its Hong Kong offer.
BOC International, CMB International and
Morgan Stanley are the joint sponsors for the
dual listing.
› WORLEYPARSONS RAISES A$1.8BN
WORLEYPARSONS, an Australian engineering
services company, has raised A$1.8bn from
the institutional tranche of a A$2.9bn
underwritten entitlement offer.
The offer was well supported by eligible
institutional shareholders, with a take-up
rate of 82%. The institutional shortfall
bookbuild was heavily oversubscribed
from both existing shareholders and other
institutional investors.
The company was selling 187m new
shares to eligible shareholders on a
1–to–1.47 basis at A$15.56 per share,
representing a 12.8% discount to the pre-
deal close of A$17.84 on October 19.
The retail portion of the offer, which is
fully underwritten and is expected to raise
A$1.1bn, will be open from October 29 to
November 7.
John Grill, chairman of WorleyParsons,
has committed to participate in the offer
with A$100m of his entitlement.
Dubai-based Dar Al-Handasah
Consultants Shair and Partners Holdings,
the largest shareholder in WorleyParsons
with a 22.78% stake prior to the
transaction, has committed to take up
about A$170m of its entitlement via the
institutional books. The group intends
to subscribe to its remaining interest of
A$490m through the retail offer.
The trading halt on WorleyParson shares
has been lifted.
The proceeds of the rights issue will
part fund the A$4.6bn purchase of the
energy, chemicals and resources division
of Jacobs Engineering Group. Apart from
the entitlement offer, the company has
issued A$985m in stock to Jacobs and
A$895m of debt to fund the acquisition.
Macquarie and UBS are the joint lead
managers and underwriters of the
entitlement offer.› CORONADO SLUMPS ON DEBUTShares of CORONADO GLOBAL RESOURCES fell as
much as 12% below the IPO price on their
first trading day, which came after the firm
downsized the deal to raise A$774m.
The stock opened at A$3.80 a share,
5% below the offering price of A$4.00.
The shares were trading as low as A$3.49
intraday.
The US coking coal miner had trimmed
the number of shares in the offering from
290m CDIs to about 193m, which were sold
at the bottom of an indicative price range
of A$4.00–$4.80. The final price gave a
market capitalisation of A$3.79bn.
Energy & Mineral Group, a Texas-based
private investment firm, remains a major
shareholder with about 78.9% of Coronado’s
total issued capital after the IPO.
Goldman Sachs was the sole global
coordinator. It was also the joint lead
manager with Bell Potter Securities, Credit
Suisse, and UBS.› NUFARM COMPLETES A$303M ISSUENUFARM, an Australian crop protection and
seeds company, has completed a A$303m
underwritten entitlement offer to fund the
growth of its business.
The company raised A$31m from the
retail portion of the offering, representing a
participation rate of about 46%.
About 6.2m shares of the retail shortfall
were allocated in full to sub-underwriters,
given the shares were not priced above
the entitlement offer price of A$5.85 each,
according to a statement.
Approximately A$238m was earlier raised
in the institutional tranche with a 68%
participation rate by eligible institutional
shareholders. Nufarm’s largest shareholder
Sumitomo Chemical, with a 16.38% stake,
did not participate in the offering.
Nufarm sold 52m new shares at
A$5.85 each on a 3-for-19 basis. The price
represented an 11.9% discount to the
closing price of A$6.64 on September 26.
“The equity raising helps ensure
Nufarm remains in a strong position to
manage short term balance sheet risk, and
supports the continuation of the company’s
growth strategy in light of recent market
uncertainty,” said Grey Hunt, Nufarm
managing director and CEO.
Nufarm posted an annual net loss
because of a writedown of its Australian
business following dry weather conditions
on the east coast of the country, but the
company had said it expected a partial
recovery in 2019.Its statutory net loss for the year to July
31 came in at A$15.6m, the company said,
compared with a profit of A$114.5m last
year. Barring one-off costs, the company’s
underlying net profit fell 28%.
Macquarie and UBS were the joint lead
managers, bookrunners and underwriters
of the transaction.CHINA
DEBT CAPITAL MARKETS
› HAINAN AIRLINES PAYS OVER 13%HAINAN AIRLINES (HONG KONG) priced a US$100m
two-year non-put US dollar bond at 13.17%
yield to maturity.
The coupon is 12%. The notes were issued
at a discounted cash price of 98.
The unrated notes have an investor
put option in October 2019 at par to yield
14.216%.
Hainan Airlines Holding, a unit of debt-
laden HNA Group, is the guarantor.
The company has a US$300m 6.35% 364-
day note due on October 31. That deal was
Hainan Airlines’ second sale of US dollar
notes with a maturity of less than one year
in 2017.
Guotai Junan International was sole global
coordinator and joint bookrunner, and was
also joint lead manager with GPB Financial
Services Hong Kong.
A similar mandate was first announced
in May via Guotai Junan, but a deal did not
materialise then. Last month, the mandate
was announced with Guotai Junan and DBS
Bank, and fixed income investor meetings
followed.
In the onshore market, HAINAN AIRLINES
HOLDING, another unit of HNA Group,
raised Rmb1.5bn (US$216m) from onshore
perpetual non-call three bonds on the
Shanghai Stock Exchange.
The notes, priced at par to yield 7.45%,
will have a 300bp step-up if not called after
three years.
Both the issuer and the notes have AAA
ratings from China Chengxin.
The issuer intends to use the proceeds for
debt refinancing and working capital.
Huajing Securities was lead underwriter
on the offering with Huafu Securities as joint
lead underwriter.
Hainan Airlines received approval to
issue up to Rmb5bn perps on the SSE. It
issued Rmb500m on September 14 and
Rmb800m on September 27.
The company on October 12 said it had
decided not to call Rmb2.5bn onshore