Forestry
Name your price for Gunns
BusinessSpectator
THE three joint lead managers of the long awaited Gunns equity raising, which will seek up to $430 million, are being well rewarded for their efforts, despite not underwriting the issue. In what is expected to be one of the most interesting issues of the year, Macquarie, JPMorgan and Credit Suisse will share up to $15.25 million, depending on how much of the retail offer is sold. The three bank teams are led respectively by Aaron Black, Steve McLean, and Adam Lennen. The three managers will receive a 4 per cent fee for the $300 million institutional component, and 2.5 per cent fee for the retail component, which will raise up to $130 million. By contrast, Macquarie, UBS and Goldman Sachs JBWere received a 2.4 per cent fee for both managing and underwriting this week’s $910 million rights issue for Alumina. The Gunns issue is notable because not only is it not underwritten, but it is non-renouncable and the ratio and price of the shares on offer will not be decided until after a book-build. Read more here