which launched following a wall-crossing
process that focused mostly on local
INVESTORSû4HEREûWASûSUFlCIENTûDEMANDûFORû
sole bookrunner Bank of America Merrill Lynch
to be able to launch the trade with guidance
that the deal was already covered on
indications of interest from the wall-cross.
There was no price guidance at launch and
books were formally covered within half an
hour, with messaging after a little over an
hour that orders below R230 risked missing
out.
That was a 2.54% discount to the R236
close and represented a deal size of R1.26bn
(US$88.5m).
A book of around 50 lines was multiple
times subscribed and heavily scaled back,
WITHûTHEûTOPûlVEûORDERSûTAKINGûCLOSEûTOûû
of the trade.
Nedbank shares opened at R232.90 on
Thursday and had pushed up to R235.24 at
the close.
Rothschild advised.
KROPZ LAUNCHES LONDON AIM LISTINGPhosphate producer KROPZ has launched a
London AIM listing, with reports suggesting
a deal size of around £50m.
The company is looking for cash to
complete an upgrade and commissioning on
ITSûmAGSHIPû3OUTHû!FRICANû%LANDSFONTEINû
phosphate mining project, reduce its debt
position, and develop a wider African asset
base.
Its portfolio includes advanced-stage
projects in South Africa and exploration-
stage assets in West Africa.
H&P Advisory and Mirabaud Securities are
joint brokers on the deal.
SPAIN
CEPSA POSTPONES WITH QUESTIONS
ABOUT RETURN
Abu Dhabi’s state-owned investment
company MUBADALA has postponed an
attempted €1.75bn-€2bn listing of oil and
gas group CEPSA in Madrid, one day ahead of
the scheduled close of bookbuilding on
Tuesday.
Mubadala blamed the suspension on the
recent market instability and the
subsequent impact on valuation.
Musabbeh Al Kaabi, CEO of petroleum
and petrochemicals at Mubadala, said it
would “consider returning to the market
when we believe conditions are favourable”.
The problem for Cepsa was that it was
marketed as a cheap alternative to its peers,
offering at the launch of bookbuilding a
dividend yield of up to 6.4% versus key peer
Repsol at 5.5%. As the market weakened and
stocks fell, Cepsa was no longer cheap.
Repsol shares fell by over 5% while Cepsa
was bookbuilding.
4HEûOILûANDûGASûmOATûMAYûRETURN ûBUTû
bankers on the deal were clear that the
sellers have to understand what they are
selling and what conditions are required for
a sale to be achieved.
“I’m not convinced that valuation really
lXESûANû)0/ûOFûMASSIVEûSIZEûONûANûASSETûTHATû
is replicable elsewhere,” said a banker
involved. “It may be that when Cepsa comes
back, they can adjust the valuation, but it
needs a big buffer. It launched with a decent
discount, but it is no longer appealing. There
are just plenty of opportunities to buy listed
peers at a bigger discount.”
Bankers have said throughout the year
that the 2018 vintage of IPOs was not of the
HIGHESTûQUALITYû
ûNOTûAûREmECTIONûONûTHEû
underlying businesses themselves, but on
the opportunity versus the listed peers.
From the launch of guidance on Cepsa,
bankers said that the focus was on the
bottom of the price range, and where it
represented a discount to Repsol and was
designed to grab attention. Another banker
was more direct in calling the range
“cheap”.
Bank of America Merrill Lynch, Citigroup,
Morgan Stanley and Santander were joint
global coordinators and joint bookrunners
with Barclays, BNP Paribas, First Abu Dhabi
Bank, Societe Generale and UBS. BBVA and
CaixaBank were co-leads. Rothschild advised.ARIMA MADRID LISTING SHRINKS
BY TWO-THIRDSARIMA REAL ESTATE downsized its Madrid IPO
by two-thirds to €100m, after initially
targeting €300m and a minimum of €275m.
Final pricing came at the original €10 per
share, with the number of shares reduced to
10m from the original 30m.
Bookbuilding had been supposed to close
on Wednesday, but was extended by two
days.
“Commercial real estate in Spain is a very
specialist asset class: the people that look at
THISûAREûAûlNITEûUNIVERSEûOFûVERYûSPECIlCû
investors,” a banker involved said. “If they
need another day to decide, we’ll give them
it.”
It was more a case of original orders put
in at launch being downsized than removed
from the book altogether, another banker
working on the deal said.
Arima’s management team put in the
largest order, contributing €14m to the deal.
They had originally sought to put in €9m at
THEûORIGINALûSIZEûOFûõM ûSOûTHEIRûlNALû
contribution jumps from the envisioned 3%
to 14%. Another banker on the deal said this
had always been a “moving target”.The book comprised around 50 orders,
ANDûTHEûNEXTûlVEûINVESTORSûAFTERû
management took 40% of the deal.
According to one banker, the deal was run
more like a private placement than an IPO,
and included more than 50 one-on-one
MEETINGS ûOVERûûPILOT
lSHINGûMEETINGSû
and 40 early-look meetings, for a duration of
almost four months.
The fact that the IPO went ahead despite
several failed Spanish listings this year is a
sign of success, the banker added.
The new shares will start trading on
October 22.
Citigroup is senior global coordinator, with
Morgan Stanley, Mirabaud and JBCM as joint
global coordinators. Kempen, ING and BBVA as
co-leads.FULL EXERCISE OF ROVI GREENSHOEPharmaceuticals group LABORATORIOS
FARMACEUTICOS ROVI has fully exercised the
10% greenshoe on its €80m re-IPO that
completed at the beginning of October.
In total, a greenshoe of 551,724 shares
was fully exercised, taking the deal size to
€87.75m.
Following completion of the marketed
follow-on on October 4, the stock has risen
above the €14.50 pricing, closing on Tuesday
at €15.70, at €16.35 on Wednesday, and at
€16.40 on Thursday.
Jefferies was sole global coordinator, with
Fidentiis Equities as joint bookrunner and
Renta 4 Banco as placement agent.SWITZERLAND
ZUR ROSE TARGETS SFr200m IN
RIGHTS ISSUEOnline pharmacy ZUR ROSE GROUP is aiming to
raise SFr200m (US$201.4m) through a rights
issue to fund its takeover of German peer
Medpex.
The rights issue is subject to approval at
an EGM in the coming weeks, but Zur Rose
expects to complete it this year.
The acquisition of Medpex is expected to
cost around €170m, dependent on growth
ANDûPROlTABILITYûTARGETS ûANDûEXISTINGû
shareholders are highly supportive of the
move, a banker on the deal said.
Zur Rose is acquiring Medpex to
consolidate its position in the German
market, where Medpex ranks third.
Shares in Zur Rose closed up 1.5%
on Thursday at SFr121.80 but had
dipped slightly to SFr119.40 by Friday
afternoon.
A management roadshow kicked off in
Zurich and will go to London and the US,
running until October 25.