The final price translates to a 5.6%
discount to the pre-deal close of S$2.69.
Books were well covered, with
participation from 60 investors. The top 10
accounts were allocated 60% of the deal and
most of those investors were long-only
institutions and private banking clients.
There is a 90-day lock-up on the REIT.
Proceeds are to fund the acquisition of a
logistics portfolio in the UK and the
development of a new facility in Singapore.
DBS and JP Morgan were the bookrunners.EUROPE/MIDDLE
EAST/AFRICAASTON MARTIN TAKES POLE AHEAD
OF FUNDING CIRCLEASTON MARTIN LAGONDA is set to begin pre-
marketing its London IPO this week, most
likely on Monday, and the carmaker could
have published research as early as the
middle of last week, seven days after its
registration document was approved.
On publication of the registration
document, Aston Martin said that
bookbuilding was due to launch on or
around September 20, suggesting a slightly
accelerated pre-marketing schedule of
around eight days.
The slightly later-than-expected start of
pre-marketing means that Aston Martin is
likely to be on a similar schedule to FUNDING
CIRCLE, which put out its registration
document last Monday.
Syndicate bankers report sales teams are
desperate to have something to tell
investors following the incoming calls
triggered by AML’s registration document.
Investor attention is therefore assured, it
will just come down to valuation.
Banks are trying to get more concretefeedback from investors in pilot-fishing, but
few bankers report much success. One
banker embarking on a second round of
early-look meetings this week said the
difference with the earlier round would
simply be updated numbers. Another
regionally focused banker said his shop had
experienced some success in nailing down
local investors on valuations – as they need
the IPOs to come to market – but little joy
with UK accounts.
If it seems like investors are playing
hardball it is no surprise as there are regular
warnings from the class of 2017 about post-
IPO growing pains.
Shoe and fashion retailer Footasylum
delivered its second profit warning of the
year last week, having only completed its
£43.4m IPO in November. On Friday shares
closed at 34.5p, down 79% from the 164p IPO
price.
Restaurant chain Vapiano is also
struggling after it lowered sales and profit
guidance last week, triggering a 30% slump
over three days. Vapiano floated at €23 per
share in July 2017 and now sits at €12.40, a
loss of 46%.DENMARK
AMBU SELL-DOWN AND OLYMPUS MOVE
WEIGH ON SHARE PRICEInvestors appeared to have secured a sweet
deal on Tuesday evening with a 10%-plus
discounted accelerated bookbuild in
medical equipment company AMBU, but the
sale looked less attractive on Wednesday
as the shares dropped through the placing
price. In unfortunate timing, rival
Olympus of Japan said at an investor day
on Wednesday that it would expand into
single-use devices, Ambu’s area of focus.
The sell-down by Chr Augustinus Fabrikker
raised DKr2.97bn (US$461m) through the sale
of 13.5m secondary shares at DKr220 each, a
10.2% discount to Tuesday’s close.
Approximately 5.4% of the company was sold
and the sale represents approximately 14 days’
trading.
A banker involved in the deal attributed
the discount to Ambu’s sky-high share price,
which has surged by more than 2,600% in
the five years to mid-August. Shares closed
on Tuesday at DKr245, up 151% since the
beginning of 2018.
“This is one of the highest valued stocks
in Europe and it’s also very volatile,” the
banker said. “That’s probably why you saw
the price where you did.”
Ambu’s shares are as a result volatile,
exceeding 50% over 30 and 90 days, and vol
is just shy of that level over 200 days.
The book was covered in an hour and 20minutes, with the top 10 investors taking
60% of the book.
No price guidance was given, although
there was wall-crossing in advance. JP
Morgan and Danske Bank ran the deal.
Shares floundered during trading the day
after the bookbuild, hitting DKr210.40 at
one point in the morning. The stock closed
on Thursday at 2.8% below the discounted
price at DKr213.8 0 and was trading at
around DKr212 in the run-up to Friday’s
close.
Another banker said that the news from
Olympus could be viewed one of two ways.
He said for the company it is a validation
that their focus is correct now that Olympus
is copying them, while others would
inevitably see it as a threat.
Prior to the sale, Augustinus was Ambu’s
second-largest shareholder, and is now third
after reducing its stake to 4.9%.
According to the first banker, the disposal
of shares is part of a natural portfolio
diversification for the investment company
of the Augustinus Foundation, and though it
did not come with a lock-up, additional sell-
downs are not expected.
“It’s a very conservative, old foundation
that would basically not do anything to
damage their reputation, so it’s not likely
they’ll sell more,” the first banker said.
Ambu was last active in ECM in
November, when it gathered DKr674m in a
placing of 1.255m new shares. The proceeds
were used to cover the cash component of
the company’s acquisition of Invendo
Medical, which it bought for €225m.EGYPT
EGYPTIAN GOVERNMENT TO FLOAT
4.5% OF EASTERN COMPANYThe Egyptian government will sell 4.5% of
state-owned cigarette producer EASTERN
COMPANY, in a deal targeting E£2bn
(US$111.7m), according to a statement by
the finance ministry seen by Reuters. It is
kicking off a wider privatisation programme
to raise E£80bn over the next two and a half
years through sales of state-owned
companies.
Shares in Eastern Company closed on
Thursday up 0.83% at E£102. EFG Hermes is
advising on the Eastern Company sale.
The government of Egypt owns 55% of the
tobacco company and the free-float is
approximately 39% according to Thomson
Reuters data.
In March Egypt announced plans to sell
stakes in 23 state companies through
offerings on the Egyptian Exchange. They
include banks, petrochemical companies
and logistics companies.86 International Financing Review September 8 2018EMEA EQUITIES
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Goldman Sachs 44 9,928.30 9 .4
2 JP Morgan 40 9,459.90 9 .0
3 Citigroup 38 6,845.70 6.5
4 Credit Suisse 27 5,380.03 5. 1
5 Morgan Stanley 38 4,912.93 4 .7
6 BAML 21 4,836.98 4 .6
7 UBS 21 4,343.52 4 .1
8 Barclays 28 4,035.9 7 3.8
9 Deutsche Bank 28 3,945.79 3.8
10 Berenberg Bank 32 2,710.42 2.6
Total 658 105,065. 77
Including all domestic and international deals and rights issues
Source: Thomson Reuters SDC code: C4cr10 Equities and SE 2250 p81-98.indd 86 07/09/2018 20:19:32