LONDON, Oct 12 (IFR) - Bookbuilding for UK waste management
group Biffa's London Stock Exchange IPO closed today without a
covered message, suggesting the float could be cancelled.
Bankers working on the deal said that there had been no
messaging on coverage or price guidance throughout the two-week
bookbuild, with the book closing earlier this afternoon.
That would suggest a cancellation is imminent, but the
bankers said an announcement today was not certain.
The IPO was largely primary, with Biffa expected to raise
£275m-£285m for a free-float of around 50%. Selling from
shareholders Bain Capital, Angelo Gordon and Avenue Capital
Group was expected to be limited, potentially just to provide a
Proceeds were to reduce net debt to around twice the
company's underlying Ebitda and a payment related to a dispute
over landfill taxes.
IPOs dominated by primary proceeds used simply to repay debt
resulting from private equity ownership can be a tough sell.
Pure Gym, another UK listing candidate, cancelled its IPO
yesterday after just getting over the line on coverage and only
hours before books were due to close for its LSE listing. Like
Biffa, it was targeting primary proceeds for debt reduction and
a high free-float of up to 49%.
Citigroup and JP Morgan are joint global coordinators and
joint bookrunners with HSBC on Biffa. Peel Hunt is lead manager.
Rothschild is advising.
(Reporting by Robert Venes)