Drax Group plc £190m Share Sale, UK
2012
STJ advised Drax Group plc on its £190m capital raising by way of an accelerated bookbuilding process. The placement was achieved at a zero discount to the previous close of GBp 520.
STJ's value-add in the transaction included: analysis of bank credentials (supplementing the incumbent brokers), broker fee and role negotiation, supporting direct dialogue between Drax and largest shareholders, wall-crossing, identification of the target investor base (working closely with IR), pricing and market-messaging during bookbuilding (empowering the Company to challenge banks' pricing recommendation), and allocation (empowering the Company to execute a line-by-line placement to meet dedicated targets).
Strong support from key existing shareholders created enormous demand and pricing momentum, resulting in the share closing up 6.35% on the day of placement.
