Baker McKenzie has successfully assisted its clients on a number of recent capital raisings during the COVID-19 period:
- Assisted clients UBS and Bank of America in their role as joint lead managers and underwriters of the AUD 500 million accelerated non-renounceable entitlement offer by Qube Holdings Limited (ASX: QUB), Australia's largest integrated provider of import and export logistic services. The proceeds of the offer will be used to support continued investment in Qube's business, including growth capital expenditure on recent contract wins and strategic acquisitions.
Team: Lead Partner, Antony Rumboll who was assisted by Special Counsel, Caroline Tait and Lawyer, Eric Li.
Advised Citigroup Global Markets Australia in its capacity as sole lead manager and underwriter in relation to a AUD 134 million fully underwritten institutional placement undertaken by Electro Optic Systems Limited (ASX:EOS). This was the second time Baker McKenzie had assisted Citi in relation to this issuer in the last six months.
Team: Lead Partner, Antony Rumboll who was assisted by Lawyer Eric Li.
Advised Bell Potter Securities Limited in its role as lead manager and bookrunner of the AUD 11 million accelerated non-renounceable entitlement offer by Elixinol Global Limited (ASX: EXL). Elixinol has a global presence in the cannabis industry including hemp-derived CBD dietary supplements, food and wellness products, as well as the cultivation and manufacture of medicinal cannabis products. Proceeds received from the capital raising will support operating cash flow, consumer brand building and distribution build.
Team: Lead Partner, Antony Rumboll who was assisted by Special Counsel, Paul Anderson and Lawyers Eric Li and Belinda Goh.
Advised clients Moelis Australia, Citigroup Global Markets Australia, and Goldman Sachs Australia, as joint lead managers and underwriters of the AUD 150 million institutional placement by Ingenia Communities Group.
Team: Lead Partner, Antony Rumboll who was assisted by Special Counsel, Paul Anderson (on US aspects), Senior Associate, Daniel McGuiness, and Lawyer, Belinda Goh.
Quotes from Baker McKenzie's Head of Equity Capital Markets and Lead Partner on the transactions, Antony Rumboll -
"The uncertainty and negative impacts caused by the COVID-19 pandemic has 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. 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. This is a time without real precedent and the Australian capital markets will remember this period for years to come."
"For those companies needing to have as much liquidity available as possible to get them through this crisis, we recommend that they consider acting now before financing options narrow."
"Australia and New Zealand have been leading the world at raising capital which will serve both countries well and help them navigate this period of uncertainty and extreme volatility."
"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."
"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."