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Chapman Tripp has observed a busy Q1, advising on all major ($5m+) equity capital market transactions on the NZX.
Activity includes an initial public offering (IPO), four secondary capital raises, and a block trade – a stark contrast to Q1 2020 where market volatility due to COVID-19 meant only one secondary capital raise had been conducted by 1 April.
In addition to advising My Food Bag on its $342m IPO, the firm has assisted on announced secondary raises of more than $500m, advising Oceania Healthcare, Savor, Evolve Education Group and the lead manager syndicate to Contact Energy’s capital raising, as well as advising interests associated with the Huljich family on the ~$320m sale of their stake in Pushpay Holdings to global investment firm Sixth Street.
Chapman Tripp Partner Rachel Dunne said, “With the expiry of NZX’s COVID-19 relief waivers, we have seen a return to more traditional offer structures, but with the placement plus ‘upsized’ share purchase plan the most common.”
“Clients are continuing to look for balance sheet stability but we are also increasingly seeing capital raisings to prepare for acquisition opportunities or to fund acquisitions under contract,” Dunne adds.
The firm’s leading equity capital markets team predicts equity raising activity to continue through Q2.
IPO interest also remains stronger than in previous years, although this may be somewhat tempered by recent volatility in marketsRachel Dunne, Partner