Plenty of candidates being picked up by the equity raising radar

While most companies would deny they need to, bankers are on standby should equity raisings be required.

Equity capital markets bankers are expected to be dusting off files this reporting season and are on standby should their services be needed.

One of the groups that stands out for a possible raise is the Bevan Slattery-chaired and founded Megaport which offers connection services for the IT industry. Megaport still requires a lot of investment, and the group’s shares soared 16.9 per cent on Tuesday on the back of a profit upgrade, taking its market value to $1.9bn. It has a $33.3m net cash position.

Some suspect the company would capitalise on the uplift by sourcing some additional funds.

Other groups under close watch are Macmahon Holdings, Sky City Entertainment, Star Entertainment, Fletcher Building, and Iress.

The $344m mining services provider Macmahon Holdings told the market it had $201m of net debt and it continued to review the balance sheet for improved opportunities.

It has no plans to raise cash for now, but is considering a focus on areas of work that require lower levels of capital such as civil, infrastructure and underground mining work.

Across the Tasman, the $1.6bn Sky City Entertainment and the $3.6bn Fletcher Building are being discussed. Neither is expected to have any imminent plans to raise equity, but some Fletcher Building investors are wary the group is entering a troubled time in the housing market while shouldering $NZ1.4bn of net debt and facing potential liabilities from pipe product defects sold in Western Australia by its Iplex unit.

Sky City Entertainment has allowed a $45m provision for Austrac fines over anti-money-laundering law breaches at its Adelaide Casino, but some wonder if it is enough.

Sources close to the $1.2bn Iress played down its need to raise equity after a punishing response to its result on Monday.

And elsewhere, the $7m of transaction costs shelled out by Australian Clinical Labs for its attempted merger with Healius gained attention as the group posted a $35.9m net profit, and shares fell 12 per cent to $2.83.