Price range slashed for Eu370m Nordex IPO

Nordex was forced to cut the price range for its Neuer Markt IPO by 18% today (Monday), taking the amount set to be raised down to Eu370m at the middle of the range, with investors continuing to demand weighty discounts to compensate for market volatility.

  • 23 Mar 2001
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The subscription spread for the deal, managed by Dresdner Kleinwort Wasserstein, was cut from Eu11-Eu14 to Eu9-Eu11.5. The shares are now at a discount to Nordex's comparables on almost every multiple, which should overcome general market fears.

"There is a natural reticence to participate in IPOs," said one banker close to the deal. "Instead of having a last minute panic, the company has said: 'This is the range and it more than compensates for market volatility'."

Danish-listed NEG Micon and Vestas are the closest comparables to Nordex, according to one fund manager in Frankfurt, who said he was using p/e multiples for 2001 to assess the IPO. On this basis, the top of the range offers a negligible discount to NEG Micon, but the bottom works out at 22%.

The figures for 2002 show bigger discounts, of between 10% and 30%. On EV/Ebit 2002 multiples, the new range offers a discount of between 27% and 41%. "This is the most relevant figure," said the banker.

He pointed to a placing of Dkr610m (Eu80m) in NEG Micon stock last Friday as a sign that there is still plenty of interest in the sector. Vestas could also help if it comes out with positive news when it announces its figures for 2000 this week. "This will ride her home," said the banker. "At these levels, we have had lots of indications that it will be nicely covered."

The deal would also benefit from a recovery on the Neuer Markt. At midday today, the Nemax 50 index had risen almost 5%.

Dresdner Kleinwort Wasserstein is sole bookrunner for the issue and joint lead manager with WestLB.

  • 23 Mar 2001

All International Bonds

Rank Lead Manager Amount $b No of issues Share %
  • Last updated
  • Today
1 JPMorgan 330.95 1510 8.45%
2 Citi 304.72 1301 7.78%
3 Bank of America Merrill Lynch 260.15 1094 6.64%
4 Barclays 236.21 972 6.03%
5 HSBC 192.93 1066 4.93%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $b No of issues Share %
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1 BNP Paribas 38.62 175 7.25%
2 Credit Agricole CIB 36.89 155 6.92%
3 JPMorgan 29.35 74 5.51%
4 Bank of America Merrill Lynch 24.91 70 4.68%
5 UniCredit 24.62 134 4.62%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $b No of issues Share %
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1 JPMorgan 9.98 67 9.68%
2 Morgan Stanley 9.41 44 9.13%
3 Goldman Sachs 8.72 45 8.46%
4 Citi 6.91 54 6.70%
5 UBS 5.28 29 5.12%