Law firm HWL Ebsworth has repriced its initial public offering and will now seek to raise $151.4 million, up to $100 million less than it previously planned.
HWL Ebsworth managing partner Juan Martinez is named as the managing director of Alarcon, the holding company that would own the law firm and list on the ASX. Arsineh Houspian
The repriced deal implied a $407.4 million market capitalisation for Alarcon HWL’s name upon listing or 11-times forecast profit.
The raising was split between a $20 million primary issue and $131.4 million secondary sell down, according to revised terms sent to funds by brokers Macquarie and Bell Potter on Tuesday afternoon.
The repricing of the deal comes a day after HWL’s bookbuild was initially scheduled to take place. However, that bookbuild kicked off on Tuesday instead and was expected to close at midday on Wednesday.
It’s a big haircut for HWL’s owners, its partners, who were initially talking about a $232 million to $255 million raising at $2.35 to $2.60 a share, or 12.7-times to 14-times forecast profit.
