$135m raising shows responsiveness of Australia’s equity capital markets to crisis, firm says

A recent deal has shown the responsiveness of the country’s capital markets to crisis, MinterEllison said.

The top firm advised Electro Optic Systems (EOS) on its institutional placement worth $134m. The transaction is “a textbook example of the responsiveness of Australia’s equity capital markets to crisis,” the firm said.

The capital raising aims to enhance the company’s liquidity, which has been impacted by the COVID-19 pandemic. It will also fund continuing growth of the company, the firm said. The raising also involved a $10m share purchase plan.

Daniel Scotti, MinterEllison ECM partner, said that the firm expects to see more of these types of transactions.

“This transaction is part of the first wave of COVID-19-related capital raises. This deal, along with others we have worked on, demonstrates that listed companies are able to rapidly access emergency capital under the Australian capital raising regime. We expect to see more of these types of transactions,” he said.

Scotti said that the raising uses the additional temporary placement capacity that the ASX has made available to assist listed companies during the crisis.

The MinterEllison team’s work also included obtaining the unique Australian Securities and Investments Commission relief needed for the raising. The approval allowed the company to offer shares worth $30,000 to all shareholders, regardless of participation in a share purchase plan in the last year.

The placement was fully underwritten by Citigroup Global Markets Australia. MinterEllison said that the placement and the share purchase plan did not require shareholder approval.

MinterEllison recently strengthened its technology consulting capability with the appointment of a new partner from a Big Four accounting firm. The international firm also recently welcomed a new capital markets partner from a global firm.