Equity Capital Raising – AWR Lloyd

Equity Capital Raising

AWR Lloyd helps its clients prepare for and execute equity capital raising or placement transactions. We first conduct a detailed evaluation of the company or asset in question and develop a robust discounted cash flow (DCF) valuation analysis. We also prepare multiples analysis based on listed company values and M&A transactions to support the DCF analysis.

We then prepare funding requirement and capital structure analysis to justify the size of the equity capital raising required. The combination of the valuation analysis and financial plan will determine the indicative percentage shareholding that the new investors will receive for their investment.

AWR Lloyd prepares an investor ‘teaser’, a prospectus or information memorandum and an investor presentation. In most instances we also assist in the preparation of a data room.

We propose a list of potential investors (e.g. private equity funds, industry players, trading companies…) with short profiles and advise on prioritization and tactics for approaching them. We assist in preparing investor meeting roadshows and then either conduct them ourselves or in conjunction with our client.

We then facilitate exchange of confidentiality agreements and transmission of preliminary information materials to potential investors. After submission of indicative bids we then advise on short-listing and facilitate site visits, data room access and due diligence meetings for short-listed investors.

AWR Lloyd then assists in the final negotiations, structuring and transaction documentation in conjunction with the client’s lawyers and any other advisors.

For example: AWR Lloyd advised a major Asian mining group on a US$420 million acquisition of a Chinese coal-mining business with two main assets – one operating underground mine and one mine under development. AWR Lloyd advised on valuation, supervised detailed due diligence and supported negotiations, deal-structuring and post-deal communication to the public and investment community. The mines produce high CV coal for the fertilizer, power and PCI steel sectors in China. The transaction has been very value-creating for the client. One of the assets was sold three years later for US$675 million while the other is currently valued at over US$1 billion.