Asset Match is pleased to announce the launch of Asset Match BookBuild platform [AM Bookbuild], an electronic auction facility for the efficient and cost-effective pricing and allocation of primary capital raisings in unquoted and illiquid securities.
Ipex Holdings, the venture capital group demerged from PA Consulting, is the first company to successfully complete an Open Offer to its existing shareholders using AM Bookbuild.
AM BookBuild platform was used by Ipex to provide a dedicated deal website for Ipex which was only accessible by shareholders. This "Company Page" allowed shareholders to view all documents related to the Open Offer, enter expressions of interest and monitor the order book. The final order book allowed the Board of Ipex to consider the feedback from shareholders and make an informed pricing decision that was both fair and transparent.
Martin Stapleton, CEO of Ipex Holdings, said: "We are pleased to have successfully completed our Open Offer using Asset Match BookBuild. We were keen to run a transparent process and the Asset Match platform allowed our shareholders to access the relevant information online and to see, and participate in, the book building process in a clear and transparent manner."
AM BookBuild is ideally suited for new issues or returns of capital in unquoted and/or illiquid securities. This includes placings, open offers (non-renounceable rights issues) and share buybacks or tender offers. Advantages of using AM BookBuild include:
• Demonstrably enhanced corporate governance framework
• Central repository for all deal related documentation
• Competitive market-derived price that should result in a lower discount and therefore lower cost of capital
• Retention of control over key aspects of the process;
• Commitment from advisers to corporate governance and optimal pricing outcomes; and
• Significantly reduced fees for execution
Iain Baillie, Co-CEO of Asset Match, said: "This is an important development in the pricing of capital raisings by private companies and other illiquid securities. It is extremely important that these deals are communicated effectively and priced transpaansparently. In this way, shareholders and investors can make informed investment decisions, and company directors are able to price private deals and manage potential conflicts of interest."
"We believe that the Asset Match BookBuild facility will prove attractive to other companies, both public and private, who wish to price new issues in an open and efficient manner."