Wednesday March 5, 2014
Asset Match Launches Asset Match BookBuild
An online auction facility to price and allocate primary and secondary placings in unquoted securities
Asset Match is pleased to announce the launch of Asset Match BookBuild [AM BookBuild], an electronic auction facility for the efficient and cost-effective pricing and allocation of primary and secondary placings in unquoted securities. Ipex Holdings, the venture capital group demerged from PA Consulting, is the first company to use AM BookBuild and successfully raised funds via an open offer to its existing shareholders.
The 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 securities. This includes placings, open offers and share buybacks or tender offers. The 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 for unquoted companies. It is extremely important that these deals are communicated effectively and priced transparently. 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 or the sale a major stakes in an open and efficient manner.”
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For further information, please contact:
Iain Baillie, Co-CEO
Matt Wilson, Corporate Finance
+44 (0) 20 7248 2788
Notes to editors:
Founded in 2011, Asset Match is the first comprehensive electronic platform in the UK for trading shares in private companies. Asset Match’s online platform has been created to facilitate auction-based liquidity in private company shares and allow investors access to new opportunities.
Asset Match BookBuild is a facility for the issuance of securities that do not have a readily-available market price, to be priced and allocated in an efficient and transparent manner. The facility allows companies to access eligible investors and price securities fairly within an improved corporate governance framework.