The capital increase is fully underwritten
with the risk split equally between joint
bookrunners Morgan Stanley and UBS.
UK
SMITHSON SMASHES TARGET WITH
£822.5m IPO
There is beating the target, and then there is
raising £822.5m versus an original goal of
£250m.
Investors have provided backing of a little
over US$1bn to city veteran Terry Smith’s
latest project, SMITHSON INVESTMENT TRUST.
From a £250m launch size, the deal was
upsized to £600m during bookbuilding,
when a provision was added to allow it to
reach £900m.
Smithson was pitched as a mini version of
its parent and manager Fundsmith with a
plan to invest globally in companies with
market caps of £500m-£15bn, below the
threshold for Fundsmith’s portfolio.
The average market cap of the companies
in which Fundsmith invests is £103.8bn and it
is predominantly focused on the US, followed
by the UK and Spain. Paypal, Amadeus and
Facebook are among its top 10 holdings.
In total, there were 82.25m shares issued
at £10 each, of which 38.82m were issued in
an initial placing, with 28.18m through an
offer for subscription and 15.23m through
an intermediaries offer.
A supplementary prospectus on October 9
mAGGEDûTHEûHEAVYûDEMAND ûINCREASINGûTHEû
expected number of shares on offer to 60m
from 25m originally, but with a maximum
for 90m shares. The deal launched in early
September.
Unlike a number of other funds,
Fundsmith will absorb the costs associated
with launch, meaning that the NAV is the
£10 issue price at admission. Trading begins
on October 19.
“Our innovative step to absorb all the
issue costs as the investment manager has
helped to remove the concern that investors
participating in the IPO would be subject to
an initial loss from these costs,” Terry Smith
said in a statement.
Fundsmith has also adopted a different
fee structure. In place of the typical NAV-
based fee, its annual fee will be 0.9% of
market capitalisation.
Investec was sole bookrunner.
BIOPHARMA CREDIT LAUNCHES US$150m
CAPITAL INCREASE
UK-listed fund BIOPHARMA CREDIT will target
US$150m in a primary placing.
The new shares will be priced at US$1.025
each, representing a 2.85% premium to the
ex-dividend September 30 NAV value. A
total of 146.34m shares or more will be
issued.
The proceeds will go towards acquiring
further investments and diversifying its
portfolio. The placing opened on October 18 and
investors can place commitments until October- Results and trading are due on November 1.
Biopharma Credit listed in March 2017, in
a London IPO that raised US$761.9m. It has
since twice called for cash in the capital
markets, raising US$154m in a placing in
December 2017, and this year raising
US$164m in a March 2018 follow-on.
The US$164m it raised in March has been
fully deployed, the company said.
JP Morgan is global coordinator with
Goldman Sachs and Canaccord Genuity as joint
bookrunners.
ELEMENTIS RAISES £176.4m IN
RIGHTS ISSUEChemicals company ELEMENTIS reported
87.59% take-up for its £176.4m rights issue
that will part-fund its US$500m acquisition
of Mondo.
In total, shareholders subscribed for
101.7m new shares out of 116m offered on a
one-for-four basis at 152p per new share,
representing a 34.7% discount to TERP,
based on the September 10 close of 252.8p
The rump of 14.4m shares was sold in the
market for 203p each on Friday morning.
After deducting the original issue price of
152p per share, the proceeds will be
distributed to shareholders who did not
exercise their rights in the rights issue.
The shares were trading around 203p on
Friday at 3pm, down 7.5% from Thursday’s
close of 219.4p.
Elementis is buying Mondo for US$500m
on a cash-free, debt-free basis, or 10.4 times
adjusted Ebitda for the seven months ended
July 31. The deal was originally proposed at
US$600m, but was revised following
engagement with shareholders.
The rights issue was fully underwritten by
UBS as global coordinator and HSBC as joint
bookrunner.SUSTAINABLE DEVELOPMENT CAPITAL
CONTEMPLATING FUND IPOInvestment manager Sustainable
Development Capital is considering a
London Stock Exchange IPO of its SDCL ENERGY
EFFICIENCY INCOME TRUST.
The trust is focused on opportunities in
THEûENERGYûEFlCIENCYûSECTORûANDûWILLûBEû
MANAGEDûBYû3$#, ûWHICHûHASûIDENTIlEDûAû
seed portfolio.
Jefferies will be sole global coordinator on
THEûmOAT ûWHICHûISûEXPECTEDûTOûLAUNCHûINû
November.FORESIGHT BEATS TARGET FOR
ACQUISITION FUNDRAISINGFORESIGHT SOLAR FUND has raised £58m for a
portfolio of assets, exceeding the original
target of £34m.
Proceeds will fund the purchase of 11
operational solar assets for £34m. The
remainder will be used to reduce the group’s
gearing by repaying some of the bank
facilities that have been drawn down.
Approximately 53.99m shares were
placed at 107.5p, a 1.6% premium to the
NAV of 105.8p as of August 31.
The shares placed were the maximum
sizing for which Foresight had shareholder
authorisation on a non pre-emptive basis.
Foresight said that there was excess demand
so orders had to be scaled back.
Stifel was sole bookrunner.TRIPLE POINT MODESTLY UPSIZES
ACQUISITION FUNDRAISINGTRIPLE POINT SOCIAL HOUSING REIT has slightly
exceeded its fundraising target, picking up
£108.15m versus a goal of £103m, to be
deployed in a pipeline of planned
acquisitions.
Triple Point had previously said that it
HADûIDENTIlEDûAûPIPELINEûFORûTHEûNEXTûû
months in excess of £400m.
In total, 105m shares were sold at 103p
each, with the number of shares increased
from 100m shares originally, with provision
for up to 150m.
Approximately 54m shares were allocated
to a placing, with 48.47m in a one-for-three
open offer and 2.32m in an offer for
subscription. At launch, Triple Point said
that there were up to 82.1m shares in the
open offer, suggesting a 59% take-up.
The fundraising was approved by
shareholders at an EGM on Thursday.
Triple Point shares opened at 104.5p,
FALLINGûmATûTOûPRICINGûOFûPûBYûTHEûCLOSE
Canaccord Genuity was sole bookrunner,
CORPORATEûBROKERûANDûJOINTûlNANCIALûADVISERû
with Akur.VALTECH POSTPONES US IPOA casualty of tough market conditions and
bad timing, VALTECH postponed its roughly
US$100m Nasdaq IPO early on Wednesday
just ahead of pricing.
Shares in the London-based digital
transformation services provider’s key
comps - Globant, EPAM Systems and Endava- had fallen heavily while Valtech was
drumming up investor interest.
Valtech had launched the sale of 6.7m
shares at US$14-$16 on October 5 for pricing
post-close on October 17. JP Morgan and
Morgan Stanley were leading the offering.
EQUITIES EMEA