The final pitches on the Viva Energy management roadshow will be made Singapore today, with the company on track to raise at least $2.4 billion next week in the largest equity capital markets deal in Australia in four years.
DataRoom understands that the retail offering will be worth $600 million. That figure could have been higher, with demand strong from brokers for the stock.
Cornerstone investors have taken about $1.2bn and there are precommitments from other fund managers ahead of the institutional bookbuild that will take place next Tuesday and Wednesday.
The company is then due to list at the end of next week. It will be the first major public market float this year.
The commitments mean that the minimum offer size, at a 50 per cent selldown from Viva’s current owners, will be $2.4bn. The capital raising could rise to be as high as almost $3.1bn.
The joint lead managers on the deal are Deutsche Bank, Bank of America Merrill Lynch and UBS, with the trio pleased with demand from investors so far.
Viva has appointed Bell Potter, Craigs, Crestone Wealth Management, Evans and Partners, JBWere, NAB and Ord Minnett as the retail brokers for the offer.
The level that Viva’s current owner, Vittol, will sell down in the float has yet to be set, but it is expected to be up to 60 per cent.
The market value range for Viva Energy had been fixed at between $4.8bn and $5.2bn by analysts. It equates to a share price range of between $2.50 and $2.65 each. The final price of the stock will be decided next week.
Demand for the Viva stock has been strong and one reason that fund managers are pointing out the lack of new equity deals coming to the market.
A raising of at least $2.4bn would easily be the largest public market deal this year and fund managers are hungry for new stock to pick up. The Viva deal; would be the biggest IPO since Medibank’s $5.7bn float in 2014.
So far this year, L1 Capital leads the field, having raised more than $1bn, while another listed investment company, Wilson Asset Management Global, raised $466m at the start of last month.
Extracted from The Australian