The IPO market threatens to hit a brick wall as the local market approaches correction territory, with Greenstone heading the growing list of casualties.
Elsewhere, a TPG Capital-Blackstone JV firms as a frontrunner for $8.3 billion in Esanda assets, the carve-up of the business formerly known as Leighton Holdings continues apace, and there’s fresh signs of activity with NAB’s life insurance unit.
Insurer Greenstone has hit pause on its planned float after scepticism from domestic investors and a retreating market put the clamps on efforts to raise around $900 million. It has been reported the group struggled to find enough support from investors at the bottom end of its indicative price range and rather than reprice, the Hollard Group-backed firm opted to pull the pin.
There has been no indication as to whether they will try again anytime soon, though a sharp lift in the ASX could see the IPO taken off the backburner.
The news came on a day when Carter Holt Harveyconfirmed it had delayed a float of its own. The firm cited weak market conditions, though there are also reports it may be in talks with Wesfarmers over a trade sale.
Fellow IPO candidate QMS Media also had a day to forget after it was forced to reissue its prospectus after ASIC detailed issues with its 2016 forecasts. However, the development is seen having little impact on plans to list this month at a $165m valuation.
Meanwhile, one high-profile listing progressing smoothly is that of Costa Group, with advisors on the float delivering strong valuations of around $1 billion for the fruit and vegetable grower.
It remains to be seen whether that optimism will flow through to investors, though The Australian Financial Review is reporting the firm is particularly confident in offshore interest ahead of a two-week roadshow.
A prospectus is expected to be lodged on June 22 ahead of a July 13 bookbuild.
In finance, the race for $8.3bn of loans from ANZ’sEsanda portfolio is heating up as the powerful TPG Capital and Blackstone joint venture tapsBank of Merrill Lynch to guide it through the auction process.
First round bids are due by the end of the month, with KKR, The Carlyle Group, Macquarie Group, Bank of Queensland, Bendigo Bank and Flexigroup among the other leading candidates.
Also in finance, there’s further sign of action with National Australia Bank’s struggling life insurance operations as reports surface that Morgan Stanley is advising Japanese suitor Nippon Life on the potential $2bn deal. It was recently speculated that the two parties had entered exclusive talks on a potential transaction.
In the engineering space, Leighton Offshore has been put up for grabs, according to the AFR. The overseas engineering operations business of CIMIC -- formerly known as Leighton Holdings -- is just the latest in the string of divestments for the scandal-hit firm.
Late last year the firm sold John Holland as well as a 50 per cent stake in Leighton Services, while Leighton Properties remains on the chopping block.
Elsewhere, speculation surrounds Origin Energy’s $2.2bn stake in New Zealand-based Contact Energy as investment bankers reportedly draw up divestment options. Questions will be raised at Origin’s strategy update today amid talk a sovereign wealth fund could buy out some of its 53.1 per cent position.
Finally, the plan to sell BrisConnections’ $1.5bn AirportLink M7 toll road has been delayed, according to the AFR. An auction process was expected to begin this month, but is now likely to occur later in the year.
