EMEA equity capital markets have reopened in dramatic style as companies rush to raise emergency funds at a time of maximum uncertainty because of the Covid-19 pandemic.
The Restaurant Group, the owner of numerous UK dining brands including Wagamama and Frankie & Benny's, raised £57m through an equity raise on Wednesday night to see it through what it expects to be a long period of Covid-19 lockdown with all its restaurants closed until June.
Supermarket Income Reit, the UK real estate investment trust focused on supermarkets, has unveiled a £75m fundraising to finance new investment opportunities that may arise from the Covid-19 crisis, which had caused UK grocers to be inundated with demand.
Equity markets welcomed new measures from the Financial Conduct Authority (FCA) to ease requirements for companies seeking to raise capital to ride out the economic havoc of the Covid-19 pandemic.
Shares in UK online fashion retailer Asos rose by more than 30% on Wednesday after the company completed a £247m ($339.46m) share sale to shore up its balance sheet during the Covid-19 crisis.
Investors stepped up on Monday night to support UK retailer WH Smith in its struggle with Covid-19 disruption in a £165.9m equity raise.
A trade in Belgian-listed brewer AB InBev has reopened the secondary blocks market with a sale of a €375.35m block by South African Breweries on behalf of participants in the Zenzele Black Economic Empowerment Scheme.
Equity bankers have suggested that some shareholders might be tempted to come to market to sell secondary shares in accelerated trades, reopening a market largely shut because of pandemic-related volatility.
Equity investors expect more capital raises this week as companies seek to raise cash to support them through the Covid-19 pandemic.
Shares in UK newsagent chain WH Smith rose more than 4% on Monday morning after it confirmed it was preparing a capital increase to repair its balance sheet after the spread of the Covid-19 coronavirus led to a large drop in the number of shoppers at its lucrative airport stores.
Amadeus, the Spanish provider of IT to the travel and tourism industries, has completed a €1.5bn financing involving the simultaneous sale of new stock and convertible bonds to protect its balance sheet after a fall in demand due to Covid-19.
UK equity market participants are assessing the impact of a huge number of dividend cancellations or postponements.
Dollar high yield and convertible bond buyers dived straight into the riskiest possible end of the market on Wednesday, snapping up rescue issues for cruise operator Carnival Corporation, a firm at the centre of the coronavirus storm.
UK companies damaged by the coronavirus lockdown are rushing to the equity market to raise capital, hoping to survive the worst economic disruption most of them have ever faced.
Hays, the UK recruitment and human resource services company, is in the market with a £200m equity placing to give it enough capital to withstand a halt to much of its business operations because of the spread of the Covid-19 coronavirus.
Convertible bonds are emerging as an important tool that companies will use to recapitalise themselves during the Covid-19 crisis alongside selling new shares, particularly for those with weak credit ratings.
Underwriting banks must subscribe to 30% of AMS's Sfr1.75bn (£1.81bn) rights issue after the spread of the Covid-19 coronavirus smashed the Austrian sensor maker's share price during the offer period.
The Pre-Emption Group, an assembly of listed companiesm investors and intermediaries that monitors pre-emption rights in the UK, has changed its guidelines to say that the impacts of the Covid-19 coronavirus means investors should support companies selling new shares worth up to 20% of their market capitalisation without giving existing shareholders first refusal.
Auto Trader, the UK online vehicle marketplace, has become the latest London-listed corporate to raise equity in response to the challenges of the Covid-19 crisis.
The Bank of England threatened to use its ‘supervisory powers’ on UK banks if they did not agree to suspend dividend distributions this year and stop paying cash bonuses to staff.
GlobalCapital is pleased to reveal the winners and nominees of its 2019 Equity Capital Markets Awards.
Equity capital markets in Europe got off to a great start in the first quarter of 2020, but any optimism about more deal flow has swiftly been killed off by the onset of a global equity market sell-off sparked by the spread of the coronavirus across the globe and the shutdown of major economies.
Saudi Aramco’s IPO last year was a historic event for the company and its owner, Saudi Arabia, but despite a record $29.4bn being raised at IPO, international investors stayed away.
More companies will raise equity capital without first offering existing shareholders pre-emption rights, given the "unprecedented" economic damage being caused by the spread of Covid-19.
Hipgnosis Songs Fund, the London-listed investment fund focused on song royalties, has acquired the music catalogue of Richie Sambora, the lead guitarist of Bon Jovi and co-writer of the US band’s hits, for an undisclosed price.
Goldman Sachs has hired a senior banker from Morgan Stanley to be its new head of equity syndicate, GlobalCapital understands.
| Rank | Lead Manager | Amount $bn | No of issues | Share % |
|---|---|---|---|---|
| 1 | Morgan Stanley | 14.30 | 81 | 9.25% |
| 2 | Goldman Sachs | 13.54 | 85 | 8.76% |
| 3 | JPMorgan | 11.56 | 91 | 7.48% |
| 4 | BofA Securities | 11.52 | 64 | 7.46% |
| 5 | Citi | 9.32 | 64 | 6.03% |
US-listed AMTD International floated on the Singapore Exchange this week, debuting dual-class shares on the southeast Asian bourse through a secondary offering.
The Restaurant Group, the owner of numerous UK dining brands including Wagamama and Frankie & Benny's, raised £57m through an equity raise on Wednesday night to see it through what it expects to be a long period of Covid-19 lockdown with all its restaurants closed until June.
Equity investors expect more capital raises this week as companies seek to raise cash to support them through the Covid-19 pandemic. However, investors are demanding issuers be clear as to why they need to raise funds now.
Bronte Capital’s funds posted bumper gains in March. The hedge fund founded by the famous Australian short seller John Hempton benefitted from puts and shorts purchased before other investors panicked about the spread of coronavirus.
US-listed AMTD International floated on the Singapore Exchange this week, debuting dual-class shares on the southeast Asian bourse through a secondary offering.
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