Deal: King & Wood Mallesons has advised Incitec Pivot Limited (IPL) on its successful completion of a $600 million underwritten placement, together with a non-underwritten share purchase plan. 

Value: $600 million. 

Area: Capital raising, private equity.

Key players: The King & Wood Mallesons’ team was led by partners Will Heath and Diana Nicholson.

Deal significance: The $3.5 billion company set out to raise $600 million through a fully underwritten institutional placement on Monday morning.

The offer was priced at $2 a share, which was an 8.7 per cent discount to the last close, according to terms sent to potential investors.

The proceeds of IPL’s capital raising will be used to strengthen IPL’s balance sheet, to increase resilience in the current environment and to provide financial flexibility to pursue disciplined organic growth opportunities.

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Commenting on the transaction, Mr Heath said KWM was delighted to work once again with IPL and assist it in successfully completing the $600 million placement. 

“Raising capital in the COVID-19 environment can be challenging. The success of IPL’s equity raising is a clear endorsement of its businesses and long-term strategy,” he said.

“This capital raising was executed seamlessly by the IPL team and concurrently with IPL’s half-year results.”

JPMorgan, Macquarie and Bank of America were lead managers and underwriters.

The raising came after Incitec failed to sell its Australian fertilisers unit and coincided with the group’s half-year result.

On the capital raising environment, Mr Heath added: “COVID-19 has caused regulators to rewrite the rule book for capital raisings. At KWM, we have consistently advocated on behalf of our clients for capital raising rules that are clear and balanced, and which do not hinder the efficient operation of capital markets.”