The firm worked on a $500m entitlement offer and a $150m institutional placement, among others
The COVID-19 pandemic has not stopped Baker McKenzie from advising on several capital raisings.
The firm confirmed its role in four deals, including a $500m entitlement offer and a $150m institutional placement. Head of equity capital markets Antony Rumboll was the lead partner in all the transactions.
Entitlement offer for Australia’s largest integrated provider of import and export logistic services
The firm advised UBS and Bank of America as the joint lead managers and underwriters of a $500m accelerated non-renounceable entitlement offer by Qube Holdings Limited. Baker McKenzie said that Qube, the largest integrated provider of import and export logistic services in Australia, will be utilising the capital to support continued investment in the company, “including growth capital expenditure on recent contract wins and strategic acquisitions.”
Rumboll was supported by special counsel Caroline Tait and lawyer Eric Li.
Institutional placement for defence and space company
Rumboll and Li also assisted Citigroup Global Markets Australia on a $134m fully underwritten institutional placement for Electro Optic Systems Limited. Citi served as sole lead manager and underwriter in the transaction.
Cannabis company entitlement offer
Baker McKenzie acted for Bell Potter Securities Limited in a transaction involving an $11m accelerated non-renounceable entitlement offer by Elixinol Global Limited. The international cannabis company manufactures hemp-derived CBD dietary supplements, food and wellness products. It also develops medicinal cannabis products.
Bell Potter served as lead manager and bookrunner in the deal. Baker McKenzie said that capital raised is expected to support Elixinol’s operating cash flow, consumer brand building and distribution build.
The Baker McKenzie team consisted of Rumboll, special counsel Paul Anderson and lawyers Li and Belinda Goh.
$150m institutional placement
The firm acted for Moelis Australia, Citigroup Global Markets Australia and Goldman Sachs Australia with regard to a $150m institutional placement by Ingenia Communities Group. Moelis, Citi and Goldman Sachs were the joint lead managers and underwriters on the placement.
Rumboll led a team composed of special counsel Anderson, senior associate Daniel McGuiness and Goh. Anderson advised on the US aspects of the transaction.
“The uncertainty and negative impacts caused by the COVID-19 pandemic have resulted in share prices dropping to historic lows. As in the GFC, listed entities have turned to Australia's deep equity capital markets as an efficient and viable solution to mitigate those uncertainties, with the ASX and ASIC making temporary changes to better facilitate capital raisings,” Rumboll said. “The extreme market volatility, and underwriters' reluctance to assume market risk for any significant period of time, has meant that placements have become the most popular form of capital raising.”
He said that Australia and New Zealand have been in the lead internationally when it comes to capital raising.
“The regulatory response has been well received, in that they provide more flexibility for companies to act and respond whilst addressing the concerns of existing shareholders,” Rumboll said.
Nonetheless, in order to come out on the other side during this period, he said that companies need to act quickly to become as liquid as possible before financing options run out.
“Absent a significant market correction, and assuming investors still have sufficient resources to deploy, we expect more activity up until 30 June, as companies look to put themselves in the best possible position to meet the challenges ahead,” Rumboll said.
