Top news
Apollo falls short with US$1.47bn ADT IPO
Equities Buyside thumbs nose at PE firm’s desired pricing
BY ANTHONY HUGHES
!POLLOû'LOBALû-ANAGEMENTûHASûAû
REPUTATIONûFORûSQUEEZINGûOUTûTOPû
DOLLARûFROMûTHEûLISTINGûOFûITSû
PORTFOLIOûCOMPANIESûBUTû
INVESTORSûPROVEDûUNWILLINGûTOû
PAYûUPûFORûITSûLATESTûEFFORTûTHEû
53BNû.93%û)0/ûOFûHOMEû
SECURITYûPROVIDERûADTû4HEû)0/û
WASûPRICEDûWELLûBELOWûRANGEûANDû
SLUMPEDûONûITSûDEBUT
!$4ûSOLDûMûSHARESûATû
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SHARESûATûLAUNCHûANDûWELLûBELOWû
THEû53
ûMARKETINGûRANGE
4HATûCAPPEDûDEALûPROCEEDSûATû
53BNûSHYûOFûTHEûUPûTOû
53BNûSUMûTHATû!$4ûHADûlRSTû
SOUGHTûTHOUGHûITûISûSTILLûLIKELYûTOû
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THEûlRSTûHALFûOFû
h4HEûCOMPANYûISûDISAPPOINTEDû
WITHûTHEûPRICEvûONEûBANKERûCLOSEû
TOûTHEûDEALûTOLDû)&2ûBEFOREûTHEû
SHARESûBEGANûTRADING
"UTûTHEûSTEEPûCUTûINûVALUATIONû
HELPEDûREVIVEûSAGGINGûMARKETû
INTERESTûANDûINûTHEûENDûTHEûDEALû
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$EBUTINGûONûTHEû.93%ûONû
&RIDAYû!$4ûOPENEDûWELLûBELOWû
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more than 13% from the offer
PRICEûWITHINûûMINUTESûMorgan
StanleyûANDûGoldman SachsûLEDûTHEû
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STRONGû
SYNDICATE
SAFE AS HOUSES
!POLLOûISûTAKINGû!$4ûPUBLICûAFTERû
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RESTEDûHEAVILYûONûTHEûTURNAROUNDû
!$4ûHASûSINCEûSTAGEDûBYû
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IMPROVINGûSERVICEûLEVELS
h!POLLOûJUSTûBOUGHTûTHISû
BUSINESSûAûYEAR
AND
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YEARûCONTRACTSûTHATûPAYûAû
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PROOFvûNATUREûOFûTHEû
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h-OSTûOFûOURûCANCELLATIONSû
COMEûFROMûMOVESû;AND=ûWHENû
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THERESûNOTûASûMANYûMOVESvû
#%/û4IMOTHYû7HALLûTOLDû
INVESTORS
h7EûDONTûGETûTHEûADDSûBUTûWEû
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3TILLûTHEûCOMPANYûFACESû
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FROMûTHEûPROLIFERATIONûOFûAPPSû
ANDûOTHERûTECHNOLOGIESûTHATûPUTû
HOMEûMONITORINGûDIRECTLYûINûTHEû
HANDSûOFûHOMEOWNERS
ADT is pursuing partnerships
WITHûTHEûLIKESûOFû!MAZONû
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WITHûTHEûTIMESûBUTûMANYû
INVESTORSûSTILLûSEEûTHEûRISKûASû
CONSIDERABLE
h4HISûISûNOTû@LOCKCOMûORûAû
COMPANYûTHATûISûGOINGûTOûGETû
TECH
LIKEûMULTIPLESvûSAIDûTHEû
HEDGEûFUNDûMANAGER
Big year ahead for ECM in Argentina
Equities Market reforms, index hopes spur influx of capital
BY STEPHEN LACEY, PAUL KILBY
4HISûISûSHAPINGûUPûASûAûBANNERû
YEARûFORûEQUITYûCAPITALûMARKETSû
INû!RGENTINAûWHEREûlVEû
COMPANIESûGOINGûPUBLICûINûTHEû
lRSTûQUARTERûAREûLOOKINGûTOûRAISEû
AûCOMBINEDû53BN
4HATûISûAûLOTûOFûSUPPLYûFORûAû
SMALLûMARKETû
ûTHEûCOMBINEDû
MARKETûCAPûOFûTHEûBENCHMARKû
-ERVALû)NDEXûISûONLYû53BNû
EVENûAFTERûAûGAINûOFûMOREûTHANû
ûINûTHEûlRSTûTWOûWEEKSûOFû
"UTûFOREIGNûCAPITALûHASûBEENû
PILINGûINûONûHOPESûTHATûTHEû
COUNTRYûWILLûBEûINCLUDEDûINûTHEû
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!FTERû!RGENTINAûFAILEDûTOûSHEDû
FRONTIERûSTATUSûLASTû*UNEûHOPESû
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MARKETûNATIONûTHISûYEAR
4HEûADMINISTRATIONûOFû
0RESIDENTû-AURICIOû-ACRIûISû
TICKINGûALLûTHEûRIGHTûBOXESûASûITû
PUSHESûTHROUGHûCAPITALûMARKETû
REFORMS
.OTûONLYûDIDûLASTûYEARSû
MIDTERMûELECTIONSûSUGGESTûLONG
TERMûSUPPORTûFORûMARKET
FRIENDLYû
POLICIESûBUTûTHEûELIMINATIONûOFû
CAPITALûGAINSûTAXESûTHISûYEARûWILLû
FURTHERûSPURûFOREIGNûINVESTMENT
CORPORACION AMERICA AIRPORTS,
THEûGLOBALûAIRPORTû
CONCESSIONAIREûISûSEIZINGûONûTHEû
MOMENTUMûWITHûAûROUGHLYû
53Mû)0/ûTOûFUELûEXPANSION
)TSûDECISIONûTOûFOCUSûONûAû.93%û
LISTINGûTHROUGHûMOREûLIQUIDû
ADRs heightens the chances of
-3#)ûINCLUSIONûIFûANûUPGRADEû
DOESûOCCUR
h)FûTHEûAIRPORTûISûINTERESTEDûINû
BEINGûINCLUDEDûINûTHEûUPGRADEDû
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THEMûTOûLISTûINûTHEû!$2ûMARKETvû
SAIDû3IMONû-ANDELûSENIORûVICEû
PRESIDENTûOFû#%%-%!ûANDû,AT!Mû
EQUITIESûATû!UERBACHû'RAYSON
h"UTû)ûBELIEVEûLIQUIDITYûWILLû
RETURNûTOûTHEûLOCALûMARKETû
ûANDû
there is a strong argument that a
DUALûLISTINGûSHOULDûBEûMADEûFORû
THEûAIRPORTv
Oppenheimer, Bank of America
Merrill Lynch, CitigroupûANDûGoldman
SachsûLAUNCHEDûBOOKBUILDINGûONû
4UESDAYûMARKETINGûMûSHARESû
ATû53n
4HEYûWILLûCONDUCTûAûROADSHOWû
ACROSSû,ATINû!MERICAû.ORTHû
!MERICAûANDû%UROPEûWITHû
PRICINGûPLANNEDûFORû*ANUARYû
HIGH FLYER
Corporacion Airports, which
OPERATESûûAIRPORTSûBUTûONLYû
FOURûOUTSIDEû,ATINû!MERICAûISû
NOTûSELLINGûITSELFûCHEAPLY
Its marketing range targets a
VALUATIONûOFûROUGHLYûûTOûû
TIMESû%6%BITDAûFORûû
ACCORDINGûTOûTHEûESTIMATESûOFûTHEû
UNDERWRITINGûBANKS
4HATûCOMPARESûWITHûûANDû
ûTIMESûRESPECTIVELYûFORû
-EXICANûAIRPORTûOPERATORSû'RUPOû
!EROPORTUARIOûDELû0ACIlCOûANDû
'RUPOû!EROPORTUARIOûDELû
3URESTEûANDûûFORû3PANISHû
PEERû!ENA
h/BVIOUSLYûWEûWOULDûLIKEûITûTOû
COMEûATûTHEûLOWûENDûFORûAûBIGGERû
CUSHIONvûONEûHEDGEûFUNDû
MANAGERûTOLDû)&2ûh"UTûINûREALITYû
ITûISûAûSELLERSûMARKETûINû
!RGENTINAû
ûNOTûAûBUYERSûMARKETû
LIKEûITûISûPERHAPSûINû"RAZILv
7ITHûLOW
COSTûAIRLINESûANDû
other foreign carriers winning
new routes in Argentina
FOLLOWINGû-ACRISûMARKETû
REFORMSûGROWTHûPOTENTIALûMAYû
JUSTIFYûSOMEûSTRETCHEDû
VALUATIONS
h4HEREûISûAûLOTûOFûUNDERUTILISEDû
CAPACITYvûSAIDûTHEûHEDGEûFUNDû
MANAGERûh-OREûAIRLINESûAREû
coming into the market,
ANDûTHEûUSEûOFûPROCEEDSûISûTOû
EXPANDûANDûMODERNISEûSMALLERû
AIRPORTSûFROMûWHICHûLOW
COSTû
AIRLINESûmYv
“I believe liquidity
will return to the local
market - and there is a
strong argument that a
dual listing should be
made for the airport”
“This is not ‘lock.com’
or a company that is
going to get tech-like
multiples”