The initial public offering of the second largest maker of packaged coffee JDE Peet was reportedly all lapped up within just three days. Analysts said that this tremendous enthusiasm among investors was because of a dearth of opportunities of IPOs because of the economic impact of the novel coronavirus pandemic. This pushed investors to rush to lap up any opportunity they got.
So far this year, the IPO issued by JDE Peet’s JDEP.AS is the largest for Europe so far. The company is the owner of brands such as Douwe Egberts, Peet’s Coffee and Jacobs. The debut of the company at the stock exchange on Friday helped it to raise a total of 2.25 billion euros.
An overall amount of $59.8 million in fees is expected to be amassed by a total of 20 banks. According to Refinitiv’s estimates, about $6.2 million each is expected to be pocketed by global coordinators BNP Paribas, JPMorgan and Goldman Sachs. While the IPO was initially expected to be launched in June, the company was prompted to bring forward the deal because of strong investor interest from the likes of George Soros’ Quantum Partners.
Analysts said that compared to the traditional road shows, the demand for IPOs that had pent up because of the coronavirus pandemic and the virtual marketing of the IPO turned out to be more efficient. This method helped to reduce time of investors and has potentially paved the way to ring in long-term changes to how IPOs are issued and sold.
According to reports quoting a banking source involved in the work, early this year, before the novel coronavirus brought Europe to a halt, advisers on the deal started to lure investors.
“The positive reaction of investors gave us the confidence that there would be enough demand for the deal at a reasonable price, even in exceptional circumstances,” the source reportedly said.
Advisors managed to complete virtual roadshows in just 72 hours as the process was sped up over the last three weeks. This eliminated the need for management of companies requiring travelling for at least a fortnight to meet investors, often at all across the world, said reports.
Webex and other technology platforms were used for organize back-to-back calls with management and analysts with the advisors setting up dedicated lines for investors to dial in.
Reports quoting sources claimed that about 150 investors were present on the line in the largest conference call.
Despite the success of the IPO of JDE Peet, analysts expect that the number of IPOs this year will be low primarily because of the coronavirus pandemic. Analysts also expect that it is likely that IPOs will be launched only by big companies present in several countries and active in resilient industries.
“The market remains very selective,” a second source was quoted in the media as saying.
(Source:www.reuters.com)
So far this year, the IPO issued by JDE Peet’s JDEP.AS is the largest for Europe so far. The company is the owner of brands such as Douwe Egberts, Peet’s Coffee and Jacobs. The debut of the company at the stock exchange on Friday helped it to raise a total of 2.25 billion euros.
An overall amount of $59.8 million in fees is expected to be amassed by a total of 20 banks. According to Refinitiv’s estimates, about $6.2 million each is expected to be pocketed by global coordinators BNP Paribas, JPMorgan and Goldman Sachs. While the IPO was initially expected to be launched in June, the company was prompted to bring forward the deal because of strong investor interest from the likes of George Soros’ Quantum Partners.
Analysts said that compared to the traditional road shows, the demand for IPOs that had pent up because of the coronavirus pandemic and the virtual marketing of the IPO turned out to be more efficient. This method helped to reduce time of investors and has potentially paved the way to ring in long-term changes to how IPOs are issued and sold.
According to reports quoting a banking source involved in the work, early this year, before the novel coronavirus brought Europe to a halt, advisers on the deal started to lure investors.
“The positive reaction of investors gave us the confidence that there would be enough demand for the deal at a reasonable price, even in exceptional circumstances,” the source reportedly said.
Advisors managed to complete virtual roadshows in just 72 hours as the process was sped up over the last three weeks. This eliminated the need for management of companies requiring travelling for at least a fortnight to meet investors, often at all across the world, said reports.
Webex and other technology platforms were used for organize back-to-back calls with management and analysts with the advisors setting up dedicated lines for investors to dial in.
Reports quoting sources claimed that about 150 investors were present on the line in the largest conference call.
Despite the success of the IPO of JDE Peet, analysts expect that the number of IPOs this year will be low primarily because of the coronavirus pandemic. Analysts also expect that it is likely that IPOs will be launched only by big companies present in several countries and active in resilient industries.
“The market remains very selective,” a second source was quoted in the media as saying.
(Source:www.reuters.com)
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