Técnicas Reunidas, a leading engineering company specialised in providing all types of value-added engineering and construction services for industrial plants in the fields of refining, natural gas, petrochemistry, and low carbon technologies, successfully completed its EUR 150m capital increase by means of a Rights Offering on the Madrid Stock Exchange. This is the largest rights issue in Spain in the last two years.
The transaction allows the company to strengthen its balance sheet and capture the growth resulting from the ongoing investment wave in energy assets.
The capital increase represented 43.7% of the outstanding share capital pre-launch, had irrevocable subscription commitments for nearly 45% of the offering and was fully underwritten by the syndicate of banks. The subscription price was fixed at a c. 30% discount to Theoretical Ex-Rights Price.
STJ Advisors and AZ Capital advised Técnicas Reunidas and its shareholders on all key stages of the transaction including:
- Selection, engagement and coordination of a five-strong syndicate of banks securing key underwriting terms and conditions for the offering right from the beginning.
- Management and coordination of a two-stage investor engagement process including a non-deal roadshow on the back of the full year 2022 results and an Eight-day long hybrid deal roadshow which included high-quality long-only accounts in Europe and USA.
- Management of irrevocable commitments from key core shareholders and institutional investors.
- Investor targeting and marketing of the opportunity amongst renowned Spanish institutional investors and family offices, with the aim of recycling any potentially loose stock into firm, long-term ownership and thus securing the transaction.
- Final pricing and structuring of the offering including discount to TERP negotiations with the banks syndicate and shareholders providing irrevocable commitments.
- Targeting retail investors and coordination of media communication strategy to maximize participation.
- Selection and engagement of legal counsels and Global Information Agent.
- Ongoing advice by our Strategic Research Advisory team on the optimisation of the communication strategy with analysts and investors on quarterly results announcements and optimisation of the equity story ahead of the transaction.
The offering has had a final take-up of 97.74% and has been c.52 times oversubscribed on the back of strong investor interest displayed in the additional subscription period and despite heightened market volatility derived from the banking sector turmoil. A rump placement was not required as a result.