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Booming metal prices could bring more equity deals
International tension has propelled valuations in the sector up, tempting issuers
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Emerging market equities have had a torrid few weeks as investors sell riskier assets over fears they will suffer if US-China trade tensions exacerbating a global economic slowdown. This has limited the supply of new deals from certain countries this year but as always in EM there are pockets of opportunity and this year’s success story has been Russia.
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Thailand’s largest block trade in six years has seen Singaporean state-owned investment fund Temasek Holdings bagging more than $500m from a sale of Intouch Holdings stock. The vendor took advantage of a surge in the Intouch’s stock price and plans to return and clean up its remaining stake. Jonathan Breen reports.
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ECM participants have been reminded how quickly the mood in equity markets can turn after a volatile week and are assessing the impacts on their autumn pipelines.
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Shares in doValue, Europe’s largest corporate servicer of non-performing loans (NPLs), were snapped up during a €52.3m accelerated share sale on Wednesday night, sold by Eurocastle.
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In an otherwise barren summer week for equity block trades in Europe, UBS led the sale on Thursday night of R1.4bn ($95.4m) of stock in Mondi, the Anglo-South African paper and packaging company, on behalf of a group of shareholders left out of a recent reorganisation of Mondi’s listing.
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Equity Capital Markets bankers are considering the possibility of bringing selected block trades to market in this week and next, in order to avoid what could be a volatile market in September.