LONDON (Reuters) – BC Partners and Intermediate Capital Group (ICP.L) said an over-allotment option pushed proceeds from the recent Medica (MDCA.PA) IPO past $400 million, bucking investor caution in the week that three similar deals foundered.
The firms sold extra shares in Medica and increased total IPO proceeds to 313.7 million euros ($425.2 million). Medica, which raised 275.5 million euros last week, has seen its stock rise 13.9 percent since making its market debut.
In the same week, three bigger private equity-led initial public offerings (IPOs) — air-ticketing firm Travelport, UK fashion chain New Look and Merlin Entertainments — were cancelled as investors refused to be “the buyer of last resort”, said a London-based fund manager.
Medica priced the IPO at 13.00 euros per share, about a quarter below the mid-point of a previous price range.
BC Partners was forced to scrap a plan to sell 15 million euros worth of secondary shares and only offloaded shares via the over-allotment option.
Including the over-allotment, about 22.5 million shares, or 47 percent of Medica shares, were sold in total. BC Partners now holds a 45.1 percent stake in Medica, down from 87.7 percent before the listing.