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Follow-ons and Rights issues

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  • Equity bankers are working with corporates on potential rights issues to shore-up balance sheets given the huge economic disruption caused by the coronavirus in Europe. But with volatility sky-high, even optimistic bankers are wary of bringing deals to market, while other ECM deals like block trades, convertibles and IPOs are no-go areas for the foreseeable future.
  • European governments are scrambling to combat the impact of the coronavirus pandemic on their populations and their economies. Although much of the intervention has been through fiscal policy and debt markets, countries are investigating taking companies back into public ownership to prop them up.
  • Governments across Europe are scrambling to support businesses as the rapid spread of the coronavirus batters their economies. In France, the state is in discussion with its advisors about preparing to step in and take equity stakes in companies showing signs of stress, according to sources speaking to GlobalCapital.
  • Sasol, the South African chemicals company, has unveiled a $6bn package of measures designed to shore up its business, which has been damaged by the spread of the Covid-19 virus and the collapse in oil prices.
  • Lawrence Stroll, the billionaire and Formula One racing magnate, has been instrumental in pushing ahead with UK car manufacturer Aston Martin’s capital raise, restructured on Friday, meaning the company’s turnaround plan, which includes a rights issue, is still going ahead.
  • Finablr’s shares have been suspended and the company has warned that it may go out of business just ten months after ts IPO.