Tag Archives: Initial public offering

Afterpay Australia explores global records as first-half sales double | Instant News


(Reuters) – Afterpay is exploring additional overseas listings amid growing US investor interest, Australia’s buy-now-pay-later said on Thursday after reporting first-half sales more than doubled.

Fintech Australia and its global competitors such as Klarna, Affirm and Sweden’s Zip Co have seen explosive growth since the pandemic locked in large parts of the world and made more people turn to online shopping.

Afterpay shares have gained more than 1,500% since March, establishing itself as the 12th most valuable company in Australia.

Afterpay also said it raised A $ 1.25 billion ($ 995 million) in convertible banknotes in a complex deal to buy Matrix Partners stock from its US business – which accounts for 43% of its sales. The United States is also a key growth market for the industry where it struggles with fast-growing Klarna.

Klarna, who is reported to be tapping into more private funding, posted his full-year results on Thursday evening.

Afterpay’s legal losses more than doubled to A $ 79.2 million as the strong growth of its UK business pushed the unit’s valuation higher and increased the value of put options held by other companies. Zip also posted a much bigger half-year loss after buying New York counterpart Quadpay.

While Afterpay’s gross transaction loss fell to 0.7% – indicating fewer customers skipping payments – margins also fell slightly to 2.2% from six months ago.

Transactions made through Afterpay totaled A $ 9.8 billion in the six months to December 31, double the A $ 4.8 billion processed last year, supported by strong holiday spending.

Active subscribers jumped 1.9 million to 13.1 million in the three months to December.

($ 1 = 1.2547 Australian dollars)

Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Forward Samuel

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Leonardo Italia raised around 2.1 billion euros on the US DRS list: paper | Instant News


ROME (Reuters) – Italian defense group Leonardo will raise about 2.1 billion euros ($ 2.54 billion) from the list of US DRS units on the New York Stock Exchange, the daily Il Messaggero reported on Friday.

FILE PHOTO: A hostess walks past Leonardo’s helicopter logo at headquarters in Vergiate, near Milan, Italy, January 30, 2018. REUTERS / Massimo Pinca

The newspaper said the state-controlled Leonardo will hold a board meeting next week to decide on an initial public offering (IPO), which is expected to be completed in March.

At the request of Italian market watchdog Consob, the group issued a statement saying it was evaluating the possibility of registering DRS.

He added that no official decision on the matter had yet been taken, confirming what sources told Reuters.

The move is intended to support the defense conglomerate’s strategy and increase fresh liquidity and is expected to consist of a sale of 40% stake in Leonardo as well as a cash call, the report added.

In November, Leonardo said it intends to retain control of the unit while assessing various options for US subsidiaries, including NYSE listing.

Leonardo bought DRS in 2008 in a deal that valued the US defense firm for $ 5.2 billion, including $ 1.27 billion in debt, equal to 3.4 billion euros at the time of the acquisition, according to Leonardo’s presentation of the 2008 deal.

Il Messaggero said the DRS was given a total value of close to 3.5 billion euros.

The defense conglomerate was among the top three performers on the Italian blue chip index, posting a 10% gain on the day.

($ 1 = 0.8268 euros)

Reporting by Stefano Bernabei and Francesca Landini; writing by Giulia Segreti; editing by Subhranshu Sahu, David Evans and Jonathan Oatis

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FOCUS-Brazil’s overwhelmed healthcare system yields profits for dealmakers | Instant News


SAO PAULO, February 16 (Reuters) – Brazil’s public health system has been pushed to the breaking point by one of the world’s deadliest coronavirus outbreaks, but the private health care sector is experiencing an unlikely explosion of deal-making.

The drive for consolidation, which comes amid growing demand even beyond the pandemic thanks to an aging population, has spawned the country’s biggest takeover deal so far this year, its top IPO in recent years and has lured investors ranging from US private equity firm Carlyle Group Inc to a venture capital fund and one of Brazil’s most prominent real estate developers, founder Cyrela Elie Horn.

“Brazil’s population is aging fast. This means that there will be a higher demand for healthcare, ”said Morgan Stanley Executive Director Cezar de Faria. “Given Brazil’s budget constraints, it is highly unlikely that the government will be able to provide all the necessary services.”

By 2060, people over 65 will make up 25.5% of the country’s population, up from around 10% now.

Investors and bankers also cited factors including the demand for alternatives to the country’s overwhelmed public health system and sufficient room to increase efficiency in privately owned hospitals.

Hospital operator Rede D’Or conducted Brazil’s biggest IPO in seven years last December and health insurers Hapvida SA and Notre Dame Intermedica SA have proposed the biggest merger so far this year in the country, worth an estimated $ 9 billion.

Brazilian private equity firm IG4 was so tempted by a potential turnaround for the country’s underperforming private hospitals that they created a company aiming to buy and revive the hospital.

After a string of deals, OPY Health IG4 is now seeking a private placement of around $ 100 million to buy six more hospitals, a source with knowledge of the funds told Reuters.

Alongside these two big deals, OPY’s buyout demonstrates how the deal-making boom is transforming the country’s fragmented private healthcare system.

A spate of recent deals has bankers actively looking for the next opportunity in the $ 197 billion private healthcare sector.

While the pandemic does not play a direct role in the deal’s gains, it could indirectly drive private investment growth as public clinics in cities like Manaus are being pushed to their limits by the coronavirus crisis.

OPY Health has one of the largest hospitals serving Brazil’s public health system in Manaus, and had a lower COVID-19 death rate than state-run hospitals during the recent city crisis with oxygen shortages.

As of Monday, Brazil had 239,245 coronavirus-related deaths, trailing only in the United States, and the country has more than 9.8 million infections. (Graphic: tmsnrt.rs/34pvUyi) (Interactive graphic tracking of the global spread of the coronavirus: open tmsnrt.rs/2FThSv7 in an external browser.)

At the same time, Brazilian government regulations limit prices only for medicines and health insurance that are sold directly to individuals, but not for group employers’ plans, which contribute to high margins.

VITAL SIGN

Rede D’Or, whose December IPO may be the first sign of a hunger for such assets, is now trading 68 times its income before interest, taxes, depreciation and amortization (EBITDA), much higher than its larger US counterpart HCA Healthcare Inc, which trades at 9 times EBITDA.

Hapvida and Intermedica are also trading at nearly 30 times EBITDA.

However, the expensive valuations have not scared off most investors. Carlyle and GIC Singapore sold a small portion of their Rede D’Or stake in the IPO.

“The boom in Brazilian health care is just beginning,” said Hans Lin, co-head of Bank of America’s investment bank in Brazil. Stock offerings and fundraising will trigger more M&A, he added.

In a sign of the sector’s relative fragmentation, the country’s top five health insurers have a combined market share of 33%, compared to 68% in the United States, Morgan Stanley said.

As agreement among public hospitals has also accelerated, analysts also see the potential for consolidation in specialized care areas such as clinical oncology or ophthalmology.

Elsewhere, several start-ups are basing their business models on the need to control the country’s soaring medical inflation, which hit 11.5% last year, more than twice the overall average, said consulting firm Mercer Marsh.

Diagnostic services startup Labi, stepping up its series B round, found a niche offering blood tests for 10% of the cost of more well-known companies like Fleury SA.

GOOD PROGNOSIS

At least eight Brazilian health care companies are planning an IPO this year, such as the network of hospitals Care, Mater Dei and Kora Saude, which was inspired by Rede D’Or.

IPO activities also include pharmaceutical companies such as Teuto, seeking at least 1 billion reais ($ 186.23 million) worth of flotation, and Viveo, a health product manufacturer planning to raise about $ 300 million.

Fundraising activity by healthcare technology companies is also growing, executives said.

Apart from Labi, telemedicine provider Conexa, which is backed by private equity firm General Atlantic, is preparing a new funding round of up to 100 million reais to acquire more companies. During the pandemic, Conexa’s online doctor visit requests increased from 50 to 15,000 visits a day.

“The Brazilian drug council is expanding telemedicine services that were previously banned, so the COVID crisis is giving our business a big boost,” said Guilherme Weigert, CEO at Conexa. ($ 1 = 5,3706 reais)

Reporting by Carolina Mandl and Tatiana Bautzer in Sao Paulo Editing by Christian Plumb and Matthew Lewis

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Brazilian waste processor Orizan completed a $ 103 million IPO | Instant News


SAO PAULO, February 11 (Reuters) – Brazil’s Orizan Valorizacao de Residuos SA, which converts waste to biofuel, has completed an initial public offering worth 554 million reais ($ 103.23 million), according to a securities filing on Thursday.

Orizan sets its offering price at 22 reais per share, compared to an indicative range of 20 reais to 27 reais per share.

The company earned 381.4 million reais, while shareholders sold 172.6 million reais in shares. ($ 1 = 5,3665 reais) (Reporting by Aluisio Alves; Editing by Sam Holmes)

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Brazilian maritime services company Oceanpact completed a $ 227 million IPO | Instant News


SAO PAULO, February 10 (Reuters) – Brazilian maritime service provider Oceanpact Servicos Maritimos has completed an initial public offering of 1.22 billion reais ($ 226.51 million), according to a securities filing on Wednesday.

Oceanpact is pricing the offer at 11.15 reais per share, below the lower limit of the indicative range to 13.85 reais per share.

The company raised 920 million reais in the offering, which aims to expand its fleet and purchase other equipment, while shareholders sell about 300 million reais of shares. ($ 1 = 5,3860 reais) (Report by Aluisio Alves Written by Jake Spring Editing by Chris Reese)

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