IFR Magazine – January 20, 2018

(Grace) #1

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
PORTFOLIOûCOMPANIES ûBUTû
INVESTORSûPROVEDûUNWILLINGûTOû
PAYûUPûFORûITSûLATESTûEFFORT ûTHEû
53BNû.93%û)0/ûOFûHOMEû
SECURITYûPROVIDERûADTû4HEû)0/û
WASûPRICEDûWELLûBELOWûRANGEûANDû
SLUMPEDûONûITSûDEBUT
!$4ûSOLDûMûSHARESûATû
53 ûDOWNûFROMûMû
SHARESûATûLAUNCHûANDûWELLûBELOWû
THEû53
ûMARKETINGûRANGE
4HATûCAPPEDûDEALûPROCEEDSûATû
53BN ûSHYûOFûTHEûUPûTOû
53BNûSUMûTHATû!$4ûHADûlRSTû
SOUGHT ûTHOUGHûITûISûSTILLûLIKELYûTOû
BEûONEûOFûTHEûBIGGESTû53û)0/SûINû
THEûlRSTûHALFûOFû
h4HEûCOMPANYûISûDISAPPOINTEDû
WITHûTHEûPRICE vûONEûBANKERûCLOSEû

TOûTHEûDEALûTOLDû)&2ûBEFOREûTHEû
SHARESûBEGANûTRADING
"UTûTHEûSTEEPûCUTûINûVALUATIONû
HELPEDûREVIVEûSAGGINGûMARKETû
INTEREST ûANDûINûTHEûENDûTHEûDEALû
WASûhWELLûOVERSUBSCRIBEDv ûTHEû
BANKERûSAIDû/NEûINVESTORûSAIDûITû
WASûTWOûTIMESûCOVERED
$EBUTINGûONûTHEû.93%ûONû
&RIDAY û!$4ûOPENEDûWELLûBELOWû
ISSUEûATû53ûANDûWASûDOWNû
more than 13% from the offer
PRICEûWITHINûûMINUTESûMorgan
StanleyûANDûGoldman SachsûLEDûTHEû
EIGHTûBOOKRUNNER
STRONGû
SYNDICATE

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!POLLOûISûTAKINGû!$4ûPUBLICûAFTERû
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)NTERNATIONALûINûAû53BNû
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RESTEDûHEAVILYûONûTHEûTURNAROUNDû

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IMPROVINGûSERVICEûLEVELS
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BUSINESSûAûYEAR
AND
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MUCH ûSOûQUICKLY vûSAIDûONEû
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TRICKYv

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THEûCOMPANYSûûRECURRINGû
REVENUEûBASEûDUEûTOûTHREEûTOû
lVE
YEARûCONTRACTSûTHATûPAYûAû
MONTHLYûCHARGE ûANDûTHEû
hRECESSION
PROOFvûNATUREûOFûTHEû
BUSINESS

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THEûECONOMYûSLOWSûDOWN û
THERESûNOTûASûMANYûMOVES vû
#%/û4IMOTHYû7HALLûTOLDû
INVESTORS
h7EûDONTûGETûTHEûADDS ûBUTûWEû
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3TILL ûTHEûCOMPANYûFACESû
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FROMûTHEûPROLIFERATIONûOFûAPPSû
ANDûOTHERûTECHNOLOGIESûTHATûPUTû
HOMEûMONITORINGûDIRECTLYûINûTHEû
HANDSûOFûHOMEOWNERS
ADT is pursuing partnerships
WITHûTHEûLIKESûOFû!MAZON û
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WITHûTHEûTIMES ûBUTûMANYû
INVESTORSûSTILLûSEEûTHEûRISKûASû
CONSIDERABLE
h4HISûISûNOTû@LOCKCOMûORûAû
COMPANYûTHATûISûGOINGûTOûGETû
TECH
LIKEûMULTIPLES vûSAIDûTHEû
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!RGENTINA ûWHEREûlVEû
COMPANIESûGOINGûPUBLICûINûTHEû
lRSTûQUARTERûAREûLOOKINGûTOûRAISEû
AûCOMBINEDû53BN
4HATûISûAûLOTûOFûSUPPLYûFORûAû
SMALLûMARKETû
ûTHEûCOMBINEDû
MARKETûCAPûOFûTHEûBENCHMARKû
-ERVALû)NDEXûISûONLYû53BN û
EVENûAFTERûAûGAINûOFûMOREûTHANû
ûINûTHEûlRSTûTWOûWEEKSûOFû

"UTûFOREIGNûCAPITALûHASûBEENû
PILINGûINûONûHOPESûTHATûTHEû
COUNTRYûWILLûBEûINCLUDEDûINûTHEû
-3#)û%MERGINGû-ARKETû)NDEX
!FTERû!RGENTINAûFAILEDûTOûSHEDû
FRONTIERûSTATUSûLASTû*UNE ûHOPESû
AREûTHATûTHEû53ûINDEXûPROVIDERû
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MARKETûNATIONûTHISûYEAR
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0RESIDENTû-AURICIOû-ACRIûISû
TICKINGûALLûTHEûRIGHTûBOXESûASûITû
PUSHESûTHROUGHûCAPITALûMARKETû
REFORMS

.OTûONLYûDIDûLASTûYEARSû
MIDTERMûELECTIONSûSUGGESTûLONG
TERMûSUPPORTûFORûMARKET
FRIENDLYû
POLICIES ûBUTûTHEûELIMINATIONûOFû
CAPITALûGAINSûTAXESûTHISûYEARûWILLû
FURTHERûSPURûFOREIGNûINVESTMENT
CORPORACION AMERICA AIRPORTS,
THEûGLOBALûAIRPORTû
CONCESSIONAIRE ûISûSEIZINGûONûTHEû
MOMENTUMûWITHûAûROUGHLYû
53Mû)0/ûTOûFUELûEXPANSION

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LISTINGûTHROUGHûMOREûLIQUIDû
ADRs heightens the chances of
-3#)ûINCLUSIONûIFûANûUPGRADEû
DOESûOCCUR
h)FûTHEûAIRPORTûISûINTERESTEDûINû
BEINGûINCLUDEDûINûTHEûUPGRADEDû
-3#)ûINDEX ûITûISûESSENTIALûFORû

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SAIDû3IMONû-ANDEL ûSENIORûVICEû
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
4UESDAY ûMARKETINGûMûSHARESû
ATû53n
4HEYûWILLûCONDUCTûAûROADSHOWû
ACROSSû,ATINû!MERICA û.ORTHû
!MERICAûANDû%UROPE ûWITHû
PRICINGûPLANNEDûFORû*ANUARYû

HIGH FLYER
Corporacion Airports, which
OPERATESûûAIRPORTSûBUTûONLYû
FOURûOUTSIDEû,ATINû!MERICA ûISû
NOTûSELLINGûITSELFûCHEAPLY
Its marketing range targets a
VALUATIONûOFûROUGHLYûûTOûû
TIMESû%6%BITDAûFORû û
ACCORDINGûTOûTHEûESTIMATESûOFûTHEû
UNDERWRITINGûBANKS

4HATûCOMPARESûWITHûûANDû
ûTIMESûRESPECTIVELYûFORû
-EXICANûAIRPORTûOPERATORSû'RUPOû
!EROPORTUARIOûDELû0ACIlCOûANDû
'RUPOû!EROPORTUARIOûDELû
3URESTE ûANDûûFORû3PANISHû
PEERû!ENA
h/BVIOUSLYûWEûWOULDûLIKEûITûTOû
COMEûATûTHEûLOWûENDûFORûAûBIGGERû
CUSHION vûONEûHEDGEûFUNDû
MANAGERûTOLDû)&2ûh"UTûINûREALITYû
ITûISûAûSELLERSûMARKETûINû
!RGENTINAû
ûNOTûAûBUYERSûMARKETû
LIKEûITûISûPERHAPSûINû"RAZILv
7ITHûLOW
COSTûAIRLINESûANDû
other foreign carriers winning
new routes in Argentina
FOLLOWINGû-ACRISûMARKETû
REFORMS ûGROWTHûPOTENTIALûMAYû
JUSTIFYûSOMEûSTRETCHEDû
VALUATIONS
h4HEREûISûAûLOTûOFûUNDERUTILISEDû
CAPACITY vûSAIDûTHEûHEDGEûFUNDû
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”
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