Morgan Stanley

Total loss absorbing capacity-eligible callable deals issued in euros this week by Morgan Stanley and last week by Goldman Sachs could herald the future for bank senior unsecured paper. But regulatory clarity will be needed before it is possible to see whether European banks can follow suit, writes Bill Thornhill.

Investors showed signs of wilting under the torrent of callable bond structures as BNY Mellon, Goldman Sachs and Wells Fargo continued the rush by US banks to print bonds aimed at cutting the cost of complying with Total Loss Absorbing Capacity (TLAC) rules.

The IPO of Misys, the UK banking software producer, was pulled on Thursday morning despite the books being covered at the base size, in another demonstration of the sour mood that has gripped the new issue market since the Nets IPO and the Conservative Party conference.

The wrecking of the autumn IPO calendar got worse this week as Misys, the UK banking software company, pulled its IPO, though ConvaTec managed to raise £1.7bn and Ahlsell Skr6bn. Surprisingly, writes Aidan Gregory, further companies are still coming forward with IPO plans.

Chinese logistics company ZTO Express priced its $1.4bn IPO on the New York Stock Exchange on Wednesday, marking the largest float from a Mainland firm in the US since 2014. And its successful listing is expected to boost the number of Chinese firms heading to the United States, writes Jonathan Breen.

Investors have greeted India’s latest IPOs with open arms, as PNB Housing Finance and Varun Beverages seek to raise Rp41.1bn ($616.9m) this week.

DNA Ltd, Finland’s third largest mobile phone operator, has decided after a strategic review to embark on a second attempt at an IPO, more than three years after shareholders voted against going public.

India’s Varun Beverages opened books to its Rp11.1bn ($166.6m) IPO on Wednesday, with anchor investors taking up their full allocation at the top of the price range.

ConvaTec, the UK medical technology company, has priced a jumbo £1.7bn ($2.1bn) initial public offering at the bottom of its initial range.

Cofco Meat Holdings has sealed its IPO at the bottom of guidance, netting HK$2.0bn ($257.9m), according to a banker close to the transaction.

PNB Housing Finance has launched its Rp30bn ($449m) IPO, India’s second largest this year, to an enthusiastic response from anchor investors as the country's FIG names continue to draw interest.

Yet another Italian corporate has come to the new issue euro bond market seeking liability management refinancing, as utility company Iren on Monday offered investors a €500m eight year bond.