The equity capital markets team also advised on “the most significant Australasian IPO in COVID-19 times,” the firm says
Chapman Tripp has assisted in generating over $2.35bn in capital raising efforts since the introduction of the NZX’s COVID-19 relief package.
Raising activity remains strong among NZX-listed companies, and the firm’s equity capital markets team has advised on several raisings involving placements and share purchase plans. It also advised on what Chapman Tripp said was the “most significant Australasian IPO in COVID-19 times.”
This major transaction involved Auckland-based surgical product company Aroa Biosurgery, which is expected to list on the ASX on 30 July. The IPO had an indicative market capitalisation of AU$225m at the offer price, the firm said.
The Chapman Tripp team helped with the New Zealand legal aspects of the offering, and was able to extend the offer into New Zealand via the Trans-Tasman Mutual Recognition Regime. The team also advised on Aroa Biosurgery’s pre-IPO equity raise, capital restructuring and associated shareholder approvals.
In addition, the firm represented Jarden, Credit Suisse and UBS, who were the joint lead managers and underwriters in SkyCity Entertainment’s $230m equity raise. The deal involved a placement of $180m and a share purchase plan (SPP) of $50m.
“The raising is novel in that both the placement and SPP were fully underwritten, reflecting the strong level of pre-commitments obtained from institutional shareholders ahead of the launch of the offering,” Chapman Tripp said.
Sell downs
The equity capital markets team has also had its hands full with major sell downs.
Chapman Tripp acted for Capital Royal Group on a $60m sell down in AFT Pharmaceuticals, where Capital Royal Group was a cornerstone shareholder. This was in conjunction with AFT Pharmaceuticals’s raising effort involving a $10m placement and an SPP of $2m, which was underwritten by joint lead managers Forsyth Barr and Bell Potter. The joint lead managers also received advice from Chapman Tripp on the deal.
Forsyth Barr sought the firm’s assistance on another transaction involving the block trade of roughly $323m of EBOS Group shares by major shareholder Sybos Holdings Pte Limited, where Forsyth Barr and Citigroup executed a bookbuild.
“This was a great deal to be involved with. It is the largest block trade in New Zealand since the last sell down by Sybos Holdings in November 2019—and it was executed on an accelerated timeframe, at a tight discount to the market price, without any trading halt being required,” said Chapman Tripp equity capital markets partner Rachel Dunne.
Dunne said she anticipates a renewed wave of raising activity as companies look to shore up balance sheets and as “the full economic impact of COVID-19 plays out.”
“We are continuing to assist clients with a range of corporate governance and periodic reporting related queries, and expect that this will be an increasing focus as we head into reporting season,” she said.
