ECM Exchange » postponed

Blowing in the wind

slacey — Thu, 18 Mar 2010 21:28:15 +0000

Renova Energia, a Brazilian alternative energy concern, is looking for alternative funding sources after electing to indefinitely postpone its initial public offering. The company is contemplating a smaller-sized private placement to fund green-field construction of new projects, according to sources close to the situation.

Santander, lead coordinator, joint-bookrunner Bank of America Merrill Lynch marketed 25.7m units at R$19–$25, an intentionally wide range designed to accommodate varying views on valuation. BB Investimentos, Banco Votorantim and Espirito Santo Investments were on the second line of the prospectus.

However, investors that viewed the company as essentially a cash-box investment vehicle pushed back on valuation, with many pulling bids at the last minute amid concerns over the performance of recent IPOs. The company operates a few small hydroelectric plants but has very few assets overall.

The company, which gained attention in December when it became the largest seller of wind-generated power to the government, is shifting its focus to a private placement. The financing is expected to target a valuation toward the bottom end of the proposed IPO pricing.

Such an outcome would vindicate Itau BBA, which was mandated on the IPO but pulled out over a dispute on the valuation. No fee, just reputation.

What chance for IPOs?

owenwild — Thu, 04 Feb 2010 08:52:02 +0000

Volatility in global markets is not going away as macroeconomic concerns remain. Private equity groups are price sensitive. Private equity groups make up the vast majority of the European IPO pipeline.

Can these be reconciled?

Taminco cancelled its IPO overnight.

Rusal won’t give up

owenwild — Tue, 15 Dec 2009 11:06:04 +0000

Russian aluminium giant Rusal has secured another SEHK listing hearing on Thursday as it continues to pursue a Hong Kong float. But those involved in the process suggest it is turning into a battle of wills between CEO and controlling shareholder Oleg Deripaska and exchange officials.

The company sought regulatory approval on November 26 and December 7 and was asked for more information on each occasion. The firm was not offered a December 3 hearing after several members of the committee sitting that day declared themselves conflicted.

If Rusal does get approval on Thursday it is looking to begin roadshows straight away – despite the impending Christmas holidays. The company is planning to float 10% in a primary deal to raise US$2bn, mostly to pay back debts.

The persistence in seeking to float in Hong Kong has led to suggestions of desperation from some in the market. The continued rejections have also prompted the view that the listing committee is simply looking for excuses to turn Rusal away.

“The committee has raised a lot of last-minute questions. It seems whatever information the company submitted they are just not satisfied… it’s impossible to meet their requirement and they asked for investor protection that actually no company can provide,” said one person close to the deal.

The day after the last rejection the company appointed two high-profile Hong Kong-based non-execs.

The primary listing would take place on the Hong Kong Exchange and the secondary listing in Paris. BNP Paribas and Credit Suisse are joint global co-ordinators for the float and joint books with Bank of America Merrill Lynch, BOC International, Nomura, Renaissance Capital, Sberbank and VTB Capital.