May 19, 2020

$12b bid On Medibank Shares, Only $1.5b Allocation Available

IPO
finance
Medibank
We Photo Booth You
2 min
$12b bid On Medibank Shares, Only $1.5b Allocation Available

The sale of Medibank Private is bigger than anyone expected.

Although the privatisation of Medibank is priced between $4.3 billion and $5.5 billion (suggesting a share price range of between $1.55 and $2), stockbrokers have bid for $12 billion worth of shares for their clients. However these brokers--from the likes of CommSec, Bell Potter and Wilson HTM--will have to let their clients know that they will only receive around 12.5 percent of the value of shares on which they bid.

Since the first round of allocation is just $1.5 billion, suggesting a share of the float between 27 and 35 percent, many believe that the retail shareholders section of bidding will be filled with second-chance buyers. Since the government is in charge of how the mix of investors and investments plays out, the amount available for allocation could still be scaled back by up to 20 percent after the institutional offer was complete.

Mathias Cormann, Finance Minister, recognized that there was an exceptionally strong level of demand at this level. Glenn Rosewall, executive chairman of independent stockbroker BBY, expected less than 10 percent to be allocated to retail brokers, so he was pleasantly surprised by the announcement, which he labeled "a pretty good outcome."

Australia has the largest savings per capita in the world, and Rosewell believes the strong demand from retail clients demonstrated the large amounts of under-utilised cash thats sitting in savings accounts and self-managed super funds.

The next thing to keep an eye on, Rosewall explained, was to see what proportion of shares went to foreign funds in the institutional offer.

Information sourced from the Sunday Morning Herald.

 

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Jun 8, 2021

Timeline: India takes unicorn leap with six in five days

India
Unicorns
Startups
tech
Kate Birch
2 min
We chart an historic week in India’s startup tech industry, where from April 5-9 the country achieved six unicorns

We chart an historic week in India’s tech industry, where in just five days, between 5-9 April 2021, the country achieved six new unicorns, bringing India’s total to 10 in 2021 to date, an immense unicorn leap from just seven in 2020 and six in 2019.

April 5: Meesho

India’s first social commerce unicorn, Meesho raised US$300m from SoftBank, Facebook and Shunwei Capital, giving the Bangalore-based startup a US$2.1bn valuation, a threefold jump from its previous funding round in 2019. Founded in 2015 by two IIT-Delhi graduates, Meesho connects producers and resellers, helping small businesses sell through social media. It has 45m customers and has enabled 13m entrepreneurs to start their online businesses with no investment.

April 6: CRED

Founded just over two years ago, Bangalore-based credit card repayment app CRED raised US$215m from Falcon Edge Capital and Coatue, nearly trebling its valuation to US$2.2bn from its January US$80m round. Allowing customers to pay off their credit card debt while earning CRED coins which they cash in for rewards, CRED has grown rapidly during COVID-19, doubling its customer base to nearly 6 million in a year.

April 7: API Holdings / Groww

The first epharmacy startup to gain unicorn status, PharmEasy (API Holdings), which has digitised 60,000 brick and mortar pharmacies and 400 doctors across India, raised US$350m in a round led by Prosus Ventures. Founded by four former Flipkart employees as a way of making investing simple, investment platform Groww became India’s second-youngest fintech unicorn, raising US$83m in Series D funding led by Tiger Global, quadrupling its previous round in September.

April 8: ShareChat

New Delhi-grown social media startup ShareChat, founded in 2016 by Mohalla Tech raised US$502m from Lightspeed Ventures, Tiger Global, Twitter and Snap taking its raised total over six rounds to US$766m and pushing its valuation to US$2.1bn. The funding will be used to grow its user base and short video platform Moj, which launched in 2020 following TikTok’s ban in India. The regional language startup claims 280m users.

April 9: Gupshup

AI-led conversational message startup joined the unicorn club after raising US$100m from Tiger Global giving it a ten-fold valuation of US$1.4bn. The smart messaging platform, which has seen accelerated growth during the pandemic, was founded in Bangalore in 2005 by serial entrepreneur Beerud Sheth, whose online freelancing platform Elance is now listed. Gupshup’s API enables 100,000+ businesses to build messaging and conversation experiences across 30+ communication channels. 

 

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