DataRoom AM: Healthy Monash

Monash IVF's strong debut on the ASX bodes well for other upcoming healthcare floats, while Providence Equity Partners eyes up Ten Network’s competition.

The IPO market received another fillip yesterday as Monash IVF continued the good recent run for healthcare floats. It bodes well for several major listings later in the year, but the jury is still out on broader float fatigue.

Elsewhere, Iluka Resources comes up short on an offshore takeover bid, SAI Global continues to try and drum up rival bids for its business and more details emerge of a possible Ten Network takeover.

The IPO market received a boost yesterday with the strong debut of fertility company Monash IVF. Monash ended at two the number of soft opening days for high-profile floats after jumping 3 per cent on its first day, with the development encouraging for the upcoming multi-billion dollar floats of Healthscope and Medibank Private.

The bigger test for the market comes today, however, as Asaleo Care prepares to hit ASX boards. The $690m IPO of the personal goods maker is the second largest of the year and provides a stronger guide for the prospect of float fatigue given its outside the popular healthcare sector.

In other IPO news, the James Packer-backed Ellerston Capital has claimed 10 per cent of food group Bellamy’s Organic ahead of its $100m float.

In media, The Australian Financial Review has revealed that potential Ten Network suitor Providence Equity Partners asked for Nine’s view on its embattled rival when executives from the firm were in Australia earlier this month. Providence is believed to have run the numbers on a takeover, though reportedly may face competition from European private equity firm Permira.

Meanwhile, Leighton Holdings is inviting bids for its properties division until July 25, according to the AFR. The firm is hoping to have selected its preferred buyer by the end of August.

In resources, mineral sands miner Iluka Resources has been rebuffed in a takeover play for Dublin-based rival Kenmare Resources. The all-scrip offer for the Mozambique-focussed Kenmare was criticised by the target’s board as undervaluing the company. It is not clear whether Iluka will put forward a fresh bid.

Origin Energy’s $800m play for Karoon Gas’ Poseidon stake could yet come to nothing as joint venture partners ConocoPhillips and PetroChina have until the middle of next week to use pre-emptive rights to trump the deal. According to the AFR, there is a reasonable chance PetroChina will swoop in and spoil Origin’s plans

Elsewhere, risk management group SAI Global has opened its books for a group of potential suitors after recently revealing it had been the subject of a $1.1bn bid from Pacific Equity Partners. Indicative offers are due by July 6, with PEP the only confirmed bidder so far.

Finally, Chinese internet giant Alibaba has chosen the New York Stock Exchange over the Nasdaq for its $20bn IPO in August, one of the largest floats in history.

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