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Global ECM Weekly Monitor Nov 10, 2017 – Equinix, China Overseas Grand Oceans Group

Our previous Global ECM Weekly Monitors can be found here.

Equinix, Inc. (NasdaqGS:EQIX)

  • Announcement Date: November 7, 2017
  • Gross Offering Amount: USD $750 million
  • Price per share: Prevailing Market Price
  • Lead Banks: Citi, JP Morgan, BofA Merrill Lynch, RBC
  • Nature of the issue: Follow-on Equity Offering; Funds will be used for working capital purposes, debt retirement and M&A
  • Security Issued: Common Stock
  • Overallotment: N/A

Equinix entered into an equity distribution agreement with four lead banks to sell up to $750 million of common stock on a best effort basis at the prevailing market rate.

Equinix’s stock fell to $482.21 by the end of the week, representing a 1% decline from its prior end of week trading price of $486.65.

The company intends to use the proceeds for general corporate purposes, acquisitions, retirement of debt and other investment opportunities.

This announcement supplements the Shelf Registration filed by Equinix on the same day, which will allow them to issue capital stock, debt securities, warrants, and purchase contracts in the future.

Equinix continues to expand their cloud-optimized data centers throughout North America and Europe. The company recently opened a $98.5 million data center at its Ashburn campus and is working with large customers such as Singapore’s DBS Bank to optimize traditional datacenters.

China Overseas Grand Oceans Group Limited (SEHK:81)

  • Announcement Date: November 7, 2017
  • Expected Offer Date: January 31, 2018
  • Gross Offering Amount: HKD 4.6 billion
  • Price per share: HKD 4.08
  • Lead Underwriter: China Overseas Land & Investment Ltd
  • Nature of the issue: Working capital requirements, Debt Repayments, Business Development
  • Security Issued: Rights Share
  • Overallotment: N/A

China Overseas Grand Oceans Group Limited (COGO) filed a Rights Issue to raise HKD 4.6 billion by offering shareholders one Rights Share for every two shares held as on January 5, 2018.

The company will issue a total of 141,119,947 Rights Shares, including 433,350,274 Rights Shares subscribed by Star Amuse and Chung Hoi (subsidiaries of the parent company).

The shares will be issued at HKD 4.08 per share, representing a 7.9% discount (based on a closing price of HKD 4.43 on November 7, 2017). COGO’s share price fell to HKD 4.06 by the end of Friday, resulting in a 8.7% decline when compared to the prior week’s share price performance.

COGO will use the proceeds accordingly:

  • HKD 3.2 billion towards debt repayments to lower debt leverage and improve liquidity
  • HKD 921 million towards business development
  • HKD 485 million towards general working capital requirements

Related Reading for Equity Capital Markets

Equity Capital Markets Topics

Dividend Policy
Dividend Reinvestment Plans (DRIP)
Block Trades

Related Product Groups for ECM

Equity Research
Investment Banking
Debt Capital Markets – another financing group
Sales & Trading – for equity derivatives to pair with equity issues; equity sales
Corporate Banking
Wealth Management/Investment Advisors
Buy Side/Asset Management

Sara
Sara
Sara Troka is a first year HBA student at Ivey Business School. Sara will be joining a bank in NYC next summer. She was involved in the York Finance Club as VP Marketing and the York University Student Investment Fund as a Junior Analyst. Outside of finance, Sara enjoys photography and fashion. She is an avid traveler who enjoys exploring historic cities and beaches across Europe.
https://www.linkedin.com/in/saratroka/

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