IPOs give new meaning to Down Under - Reuters

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Workers are reflected in an office building's windows in Sydney's Barangaroo business district in Australia's largest city, May 8, 2017. REUTERS/Jason Reed

It’s a good time to be an M&A banker in Australia – contested tie-ups read more are surging. Colleagues in equity capital markets are having a rougher time. Deals get done, but performance is wanting.

Keypath Education (KED.AX) became the latest disappointment on Wednesday. The online-lesson provider’s shares tumbled more than 8% at one point. More than half the 13 companies listing on the Australian Stock Exchange this year with a market value above A$100 million ($78 million) now trade at or below the offer price against an 8% rise in the benchmark index. They include Australian Clinical Labs (ACL.AX), meal-kit deliverer My Food Bag (MFB.NZ) and KKR-backed non-bank lenders Pepper Money (PPM.AX) and Latitude Financial (LFS.AX) read more .

That should make the M&A route more appealing. Not at mortgage-settlement firm PEXA (IPO-PRO.AX), though. Backer Link Administration leveraged bids from KKR and others to get a better deal from stock-market investors. Whether the A$3.3 billion valuation holds up once shares start trading will be another matter. (By Antony Currie)

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