Five brokers mandated on Alinta Energy's $3b initial public offering
TPG has hired a hefty five-strong broker syndicate to prepare Alinta Energy for the listed markets.
TPG has hired a hefty five-strong broker syndicate to prepare Alinta Energy for the listed markets.
Street Talk can reveal TPG has mandated Goldman Sachs, Macquarie Capital and UBS to run the float as global coordinators, while Credit Suisse and Morgan Stanley have also been hired as joint lead managers.
The group were appointed on Wednesday night by shareholder and private equity giant TPG and will start exploring an initial public offering this half.
It's understood Alinta's chosen banks pitched around three key themes. These included the Jeff Dimery-run company's superior cashflow conversion compared to AGL, which enables the company to fund its strong growth pipeline and pay a 5.5 per cent to 6.5 per cent dividend; its lack of exposure to coal; and the fact almost half its earnings come from long-term contracted assets, while the rest comes from the stable Western Australian retail gas business.
The clean energy theme will play into the pitch to fund managers. While AGL has the largest coal fired generation fleet in the country and will not exit coal until 2050, Alinta closed its only coal fired power station earlier this year.
The appointments come as Alinta's owners get serious about the IPO path, having failed to sell the company to strategic buyers including AGL Energy.
TPG, which speaks for the bulk of the shareholder group, received written pitches from banks last week, as revealed by Street Talk, and interviewed utilities bankers and equity capital markets teams in Melbourne.
Alinta makes about $400 million in annual earnings before interest, tax, depreciation and amortisation, with its owners understood to be seeking about $4 billion for the business.