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Naturgy and Zurich fall in secondary market after jumbo blocks
Capital raise and investor selldown follow €3bn raise by Engie on Friday evening
UKPN purchase seen as positive by rating agencies, leads to senior and hybrid upgrades
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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.
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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.
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UK equity market participants are assessing the impact of a huge number of dividend cancellations or postponements. It is another layer of fundamental disruption to business as usual, brought about by the coronavirus pandemic, and one which could have wider repercussions.
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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. Banks are having to stretch deal structures to get the crucial financings done, but this will not work in all cases.
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Hong Kong saw a pair of block trades this week as WuXi Biologics Holdings offloaded HK$4.6bn ($599.4m) in WuXi Biologics (Cayman) stock and Viva China sold HK$1.51bn in Li Ning Co shares.
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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.