IPO hopefuls cast nervous eye at Evergrande

Outside the Sydney ASX building. DataRoom understands that multibillion-dollar Judo Bank, which has been out talking to investors, has hopes of raising about $400m for its IPO this year. Picture: NCA Newswire /Gaye Gerard

Companies hoping to list on the Australian Securities Exchange in the weeks ahead are no doubt bracing themselves to see how the problems with Chinese property giant Evergrande play out.

Jitters around China’s second-largest real estate developer struggling to meet its liabilities are already putting the market on high alert and triggered debate about whether a collapse of the debt-laden group could be as big as that of US bank Lehman Brothers during the global financial crisis.

Already, New Zealand’s Stride Property Group has shelved its plans for its Fabric Property initial public offering, while there are now questions whether steel company Vulcan will proceed with a cornerstone process for a $500m-odd Australian IPO given the current market conditions and some scepticism creeping in as to whether it will achieve a $1bn valuation.

Meanwhile, DataRoom understands that multibillion-dollar Judo Bank, which has been out talking to investors, has hopes of raising about $400m for its IPO this year.

The understanding is that it, too, has been working on a cornerstone process, while sure to be nervous is the conga line of brokers on an attempted Australian float of SG Lottery with the hope of achieving a $10bn-plus valuation, including debt and a raising of $5bn.

It is understood that banks working for the spin-off of US-based Scientific Games have been attempting to get a deal fully underwritten and priced to compete with trade buyers.

Another group looking to list this year is services company Ventia, owned by CIMIC and Apollo Global Management.

The understanding is that Ventia is looking to tap the market for about $1.5bn in the hope of achieving a valuation of at least $3bn.