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Chapman Tripp has been heavily involved in the recent return of activity in New Zealand’s equity capital markets. The firm has assisted in raising $3.6 billion across four large equity capital raisings, including New Zealand’s largest ever secondary capital raising and the first accelerated non-renounceable entitlement offer since the NZX Listing Rules were amended to permit such raisings.
Chapman Tripp’s equity capital markets experts have acted on four large capital raises this year:
- Rachel Dunne (partner), Philip Ascroft (senior associate), Ella Knoester (solicitor) and Louise Hwang (solicitor) assisted Heartland Group Holdings to bank $210 million through a $105 million underwritten institutional placement and a $105 million underwritten accelerated non-renounceable entitlement offer to enable Heartland Bank to complete the acquisition of Challenger Bank, now Heartland Bank Australia. Heartland’s capital raise was notable due to it being the first accelerated non-renounceable entitlement offer completed after changes to the NZX Listing Rules were made in January 2024 to allow this offer structure on a permanent basis following lengthy market consultation.
- Josh Blackmore (partner), Tom Jemson (senior associate), Julia Carrington (senior associate) and Hye-Song Goo (solicitor) advised Infratil on its $1.275 billion capital raising via a $1 billion underwritten placement and a $275m non-underwritten retail offer of new shares. The capital raising was to support the continued growth of Infratil’s data centre operator CDC and provide more flexibility for growth across Infratil’s global portfolio.
- Auckland International Airport’s equity raise of $1.4 billion took off, with an underwritten placement of $1.2 billion and a non-underwritten retail offer to raise $200 million. The funds will be used to repay bank debt and provide flexibility to fund Auckland International Airport’s planned capital investment programme, including a $2.2 billion Domestic Jet Terminal construction project. Rachel Dunne (partner) and Philip Ascroft (senior associate) advised the underwriters and lead managers, Jarden and Macquarie.
- Most recently, building on the success of the above, Fletcher Building announced a $700 million equity raise with a $282 million underwritten placement and $418 million underwritten accelerated non-renounceable entitlement offer. The proceeds will strengthen Fletcher Building’s balance sheet to allow the company to focus on operational performance under the new leadership of its incoming Group Chief Executive & Managing Director, Andrew Reding. Rachel Dunne (partner) and Philip Ascroft (senior associate) advised the underwriter and lead manager to the raise, Jarden.
It is pleasing to see a resurgence of equity capital markets activity this year, and for our firm to be so involved in these milestone transactions. We look forward to this continuing into 2025 as the Government, NZX and capital markets participants focus on proposed changes to streamline and promote capital markets activity, and a lower interest rate environment enhances the attractiveness of equity capital markets to investors.Rachel Dunne, Partner, Chapman Tripp
