![]() ![]() Analysts from the pitching banks were also invited along. Bankers were pitching for the Loterias deal last week in a process being run by adviser Rothschild. Loterias, the national lottery operator, is seen as a very high quality asset and such a cash cow that it cannot fail. Atento is a call centre, while Bankia and Banca Civica represent exposure to the Spanish economy and potential turnround – they will also be priced at whatever level guarantees they get done. STJ Advisors was the independent adviser.Ītento is not expected to have any impact on caja IPOs or that of Loterias. BBVA, BNP Paribas, JP Morgan and Santander were joint bookrunners. There were a few new institutional orders on Friday, but even if the book had ended covered, the debut would have registered significant losses for those in the deal.Ĭitigroup and Goldman Sachs were joint global co-ordinators. “The worst peer is currently the best peer ,” said one observer. But that ignored the reality of the European IPO market where the worst comparable metric is the one investors will use. It was easy for the leads to argue that Atento did not deserve to come at a discount to Teleperformance considering the Spanish firm is expected to have double the organic growth of its French peer and operates with a higher margin. Teleperformance kept falling throughout the bookbuild so the price cut on Thursday morning to €17.25 simply restored a slim discount. The €19.25–€25.00 original price range for 30.6m secondary shares offered only a slim discount to Teleperformance at the bottom – and that to a stock that had fallen 15% in the preceding month. The main problems were the poor trading of peer Teleperformance and a failure to set a range that was attractive at the bottom. One bookrunner agreed that it was clear on Thursday night that the deal was dead, but Telefonica wanted to try everything. ![]() The embarrassment grew as the bookrunners ended up putting in prop orders to try and shore up the deal, a move more likely to interest those looking to short on debut than buy into the deal. Yet despite the Street and some investors thinking the deal had been cancelled, Telefonica pushed on for one more day – but with no further pricing moves. ![]() The small drop was not enough to engage investors knowing that the deal was not covered at that level and it still wasn’t at the end of the day. The IPO for the call centre outsourcing unit was scheduled to close on Thursday and on the final morning of bookbuilding, a 10% cut was made in the offer price to take the deal down to €527.85m. Telefonica’s spin-off IPO of Atento ended in farce on Friday as the deal was extended with no hope of a successful outcome. ![]()
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