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MinterEllison has released a report exploring the issues facing markets and businesses in our current time of market volatility and uncertainty.
A new report from BigLaw firm MinterEllison, Weathering uncertainty: the state of Australian equity capital markets, details the viewpoints of a group of seasoned capital markets experts who discussed the trends and outlook for equity capital markets at a recent firm roundtable in Sydney.
Currently, business ambitions are constrained by the broader macroeconomic environment and capital market conditions. Many factors are causing uncertainty and hampering the activity of equity capital markets.
A primary cause of uncertainty is higher inflation, exacerbated by the reaction from central banks to tighten monetary policy.
The war in Ukraine has also disrupted global supply chains and energy supplies, and rising interest rates are prompting fears of a recession in the United States, and potentially Australia.
These pressures are impacting company valuations and institutional investor support, the report noted.
“Despite volatile macroeconomic conditions, successful capital raisings are still taking place in the market — though for many, the tactics and approaches have changed since this time last year,” said MinterEllison partner Daniel Scotti.
Three key takeouts from the roundtable discussion were distilled:
“However, organisations could use this period productively to work on maintaining their ‘investor readiness’ through regular dialogue with potential investors and financial advisors,” he added.
The roundtable speakers noted that while fundraising had become more difficult, it was a reflection of the cyclicality of markets and prevailing macroeconomic conditions.
The speakers expressed longer-term confidence in the Australian market’s distinctive ability to rebound.
The speakers included Blair Beaton, acting group executive for listings and chief strategy officer of ASX; Anthony Brown, chief executive of NobleOak Life; Stuart Dettman, managing director at Rothschild & Co; and Amelia Hill, managing director at MA Moelis.
They were joined by Bing Jiang, partner at Next Capital; Calvin Kwok, general counsel at Pinnacle Investment Management; Will Lawrence, director at Wilsons; Andrew Lockhart, managing director at Metrics Credit Partners; Michael Ryan, managing director at Brookfield Asset Management; and Greg West, non-executive director at IDP Education.
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Jess Feyder
