Veda, Vocation IPOs close early

Both share sales were oversubscribed, according to bankers.

Investment banks underwriting the initial public offerings of credit bureaux Veda Group and education and retraining company Vocation have sold just under $600 million worth of shares in both companies, more than a week before the IPOs are scheduled to close.

Shares in Veda’s $341.1 million IPO and Vocation’s $253.3 million share sale were placed with investors in less than a day as the IPOs were both “substantially oversubscribed,” according to bankers. Vocation’s IPO allotment was scheduled to close December 6. Veda’s priority offer to brokers and others was due to close December 3.  

Highbury Partnership is Veda’s financial adviser while Citigroup Group Inc and UBS AG are the IPO’s joint lead managers.

Macquarie Group (MQG) and UBS are the joint lead managers of Vocation’s IPO.

This year 34 IPOs have priced in Australia and all but two are now trading on the ASX, according to Bloomberg data.

Macquarie and UBS are locked in a race to become the leading underwriter of Australian IPOs. Australia’s biggest investment bank holds a clear lead over its Swiss rival at present, having underwritten $773.4 million worth of IPOs compared to UBS which has underwritten $475.5 million, according to Bloomberg data.

UBS is the sole global coordinator - and joint lead manager with Macquarie, Commonwealth Bank (CBA) and Morgan Stanley - on this year’s biggest IPO, Nine Entertainment Co, which may raise as much as $697.3 million. Nine executives have been visiting fund managers in the US this week and received a positive reception, giving the IPO’s underwriters' confidence the IPO can raise the maximum amount of money targeted.