ASX candidate Asaleo Care, formerly known as SCA Hygiene, looks set to debut on disallowed at $1.65 after its curtailed institutional book build witnessed a late surge in demand from domestic investors.
According to sources, the higher price was driven by large volume from the offshore fund managers who piled in to the equity raise at $1.63.
As reported by Street Talk, brokers joint lead managers Bank of America Merrill Lynch, Citi and Macquarie told investors on Monday afternoon the two-day book build would be cut short with no new orders taken after 11pm.
Fund managers had until 11am Tuesday to adjust their bid price, but were not allowed to increase bid volume.
An announcement on the final price is expected to be made later this afternoon, before shares are allocated.
The support will enable PEP to fully exit Asaleo Care, which it owns with Sweden’s SCA. The slight uptick in value also keeps the buyout firm in the middle of the $1.55 to $1.80 offer range, with over $650 million raised.
