Post by Catdaddy on Nov 29, 2007 10:27:16 GMT -5
IPO traffic jam clears ahead of Franco-Nevada offering
www.theglobeandmail.com/servlet/story/RTGAM.20071128.WBstreetwise20071128173901/WBStory/WBstreetwise
Andrew Willis, November 28, 2007 at 5:39 PM EST
The flood of IPOs launched going into the end of the year is sorting itself out in the Street’s typically Darwinian manner, with the strongest surviving and more speculative deals being pushed into the new year.
All attention today is on Franco-Nevada, which is expected to price its $1-billion-plus return to public markets. There is every indication that the energy and mining royalty play will come in near the top end of the $13.50 to $15.50 a share range set by underwriters. The TSX is expected to allow trading on a when-issued basis in the near future, and it will be the largest IPO of the year.
BMO Nesbitt Burns and UBS Securities are leading the deal, which sees the company being spun out of gold play Newmont Mining.
Like many successful financings, this deal gained momentum on news of a large lead order. Former Newmont president and Franco-Nevada co-founder Pierre Lassonde announced publicly as marketing began that he was buying 3 million shares at the IPO price, or 4-per-cent of the company. Mr. Lassonde, who will be chairman of the reborn Franco-Nevada, is paying for this stock with his Newmont shares.
Two green deals were priced this week, with Innergex Renewable Energy raising $115-million by selling stock at $11 a share in a BMO Nesbitt Burns and CIBC World Markets led deal, and solar energy play Day4 Energy pulling in $100-million by selling stock at $7.25 a share in a GMP Securities offering. The Innergex financing got done below the planned price, but it got done.
“The problem in this choppy market is institutions are cautious, and risk averse, so they are pushing for valuations that are clearly cheap,” said one banker with several IPOs lined up. He added: “One headwind we face is the weak performance of several recent IPOs.”
With 19 IPOs trying to close by Christmas, some companies are already opting to step out of the traffic and wait for the new year before starting formal marketing campaigns. They include smaller tech plays, such as software firm Atrion Inc. and Lavell Systems. These companies are simply seen as more speculative than the established companies lined up to debut on the market.
www.theglobeandmail.com/servlet/story/RTGAM.20071128.WBstreetwise20071128173901/WBStory/WBstreetwise
Andrew Willis, November 28, 2007 at 5:39 PM EST
The flood of IPOs launched going into the end of the year is sorting itself out in the Street’s typically Darwinian manner, with the strongest surviving and more speculative deals being pushed into the new year.
All attention today is on Franco-Nevada, which is expected to price its $1-billion-plus return to public markets. There is every indication that the energy and mining royalty play will come in near the top end of the $13.50 to $15.50 a share range set by underwriters. The TSX is expected to allow trading on a when-issued basis in the near future, and it will be the largest IPO of the year.
BMO Nesbitt Burns and UBS Securities are leading the deal, which sees the company being spun out of gold play Newmont Mining.
Like many successful financings, this deal gained momentum on news of a large lead order. Former Newmont president and Franco-Nevada co-founder Pierre Lassonde announced publicly as marketing began that he was buying 3 million shares at the IPO price, or 4-per-cent of the company. Mr. Lassonde, who will be chairman of the reborn Franco-Nevada, is paying for this stock with his Newmont shares.
Two green deals were priced this week, with Innergex Renewable Energy raising $115-million by selling stock at $11 a share in a BMO Nesbitt Burns and CIBC World Markets led deal, and solar energy play Day4 Energy pulling in $100-million by selling stock at $7.25 a share in a GMP Securities offering. The Innergex financing got done below the planned price, but it got done.
“The problem in this choppy market is institutions are cautious, and risk averse, so they are pushing for valuations that are clearly cheap,” said one banker with several IPOs lined up. He added: “One headwind we face is the weak performance of several recent IPOs.”
With 19 IPOs trying to close by Christmas, some companies are already opting to step out of the traffic and wait for the new year before starting formal marketing campaigns. They include smaller tech plays, such as software firm Atrion Inc. and Lavell Systems. These companies are simply seen as more speculative than the established companies lined up to debut on the market.
