Goodbye job applications, hello dream career
Seize control of your career and design the future you deserve with LW career

Baker McKenzie helps clients raise capital during COVID-19

Baker McKenzie has successfully assisted its clients in a number of recent capital raisings during the COVID-19 period.

user iconTony Zhang 15 May 2020 Big Law
Antony Rumboll
expand image

Lead partner Antony Rumboll, who led all of the transactions, said that 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,” Mr Rumboll said.

“The extreme market volatility, and underwriters’ reluctance to assume market risk for any significant period of time, [have] 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.

Advertisement
Advertisement

Mr Rumboll said that 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”.

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,” he added.

UBS and Bank of America underwrites capital for Qube Holdings

The Bakers team assisted clients UBS and Bank of America in their role as joint lead managers and underwriters of the $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.

This team was led by lead partner, Mr Rumboll who was assisted by special counsel, Caroline Tait and lawyer, Eric Li.

Citigroup underwrites for Electro Optic Systems

Bakers had advised Citigroup Global Markets Australia on its capacity as sole lead manager and underwriter in relation to a $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. MinterEllison had advised Electro Optic Systems.

The team that led the transaction included lead partner, Mr Rumboll who was assisted by lawyer Mr Li.

Potter Securities leads capital raise for Elixinol Global 

Bakers advised Bell Potter Securities Limited on its role as lead manager and bookrunner of the $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.

The Bakers team was led by lead partner Mr Rumboll who was assisted by special counsel Paul Anderson and lawyers Mr Li and Belinda Goh.

Moelis, Citigroup and Goldman Sachs lead capital rasing for Ingenia Communities 

Bakers had advised clients Moelis Australia, Citigroup Global Markets Australia, and Goldman Sachs Australia, as joint lead managers and underwriters of the $150 million institutional placement by Ingenia Communities Group. HWL Ebsworth had advised Ingenia Communities Group.

The transaction was led by lead partner, Mr Rumboll who was assisted by special counsel, Mr Anderson (in US aspects), senior associate, Daniel McGuiness, and lawyer, Ms Goh.

You need to be a member to post comments. Become a member for free today!