Good morning,

In a year when ECM bankers have been starved of big capital raises, Orora’s monster $1.35 billion equity raise (the biggest since Atlas Arteria) should have got everyone’s blood pumping, but it wasn’t to be.

As Orora resumed trading on Wednesday, shares opened at $2.85 – above the $2.70 offer price but a fair way off the $3.16 theoretical ex-rights price (TERP). They recovered somewhat through the day, trading as high as $2.95 and closing at $2.88.

That’s not exactly great. And neither was the 83 per cent institutional takeup for its non-renounceable rights issue. Even with the sword of dilution hanging above their heads, a big chunk of its investors chose to forgo the deal.

Part of Orora’s problem was the size of the transaction. It essentially bet itself to acquire a $2.15 billion business from Carlyle on the other side of the world – funded by $1.35 billion in fresh equity and $875 million in debt.

The retail offer is scheduled to open on Tuesday.

At some point, there will be $875 million worth of bridging debt that should get shown to prospective lenders.

Happy reading,

• Bendigo Bank has quietly been trying to sell Homesafe, but bidders are baulking at the valuation.
• Victoria’s biggest bus operator Ventura Group is fielding interest from at least two offshore bidders.
• Seneca Capital is set to meet potential investors for its RV accessories maker Recreation Brands.
• Fintech Upstreet has shut shop 17 months after it raised $3 million from investors.
• JPMorgan‘s equity desk traded a $47 million block of uranium developer Paladin Energy’s shares before market open on Wednesday.

• MA Financial has kicked off plans to accumulate a $1 billion-plus portfolio of accommodation hotels, writes Larry Schlesinger.
• Commonwealth Bank has swooped on Xero’s discounted invoice financing player Waddle, writes Lucas Baird.
• WeWork said it will attempt to renegotiate nearly all of its leases and may exit some properties, The Financial Times reports.

Homesafe’s total investment portfolio has been steadily revalued upwards since 2020, rising from $779 million in June 2020 to $957 million at June 30.

Click here for the latest equity market wrap.