Davy to share in €17m Ardagh underwriters' payout
Davy and other underwriters of the Ardagh flotation will share in discounts and commissions of between $18.4m (€17.1m) and $21.2m (€19.1m), according to a full prospectus which was filed late last week.
According to the packaging giant the lower fees will apply if the underwriters do not exercise an option to purchase additional shares and the higher amount applies if the options are exercised in full.
Last week's New York Stock Exchange flotation valued the group at over $5bn. After listing at $19, the stock was trading at over $22 on Friday.
Davy is one of several underwriters of last week's listing with the remaining underwriters comprising Citigroup, Deutsche Bank, Goldman Sachs, Barclays, Credit Suisse, JP Morgan and Wells Fargo.
The lion's share of the commission will go to Citigroup.
An additional $14m in expenses is expected for costs such as legal and accounting fees.
Ardagh raised $307.8m in the IPO which will help to pay down debt.
Chairman Paul Coulson, who owns about a third of the group, said there were no plans to follow up the IPO with additional issuance.
Ardagh had previously pulled plans for stock market debuts but Coulson said that this time around the company was determined to list.
"We'd structured it to be a relatively small amount of money raised because we wanted to be able to do it irrespective of market conditions. Now as it turns out, our timing is near perfect because market conditions are great," he said last week.
Sunday Indo Business