Our latest roundup covers news from April 18 – 30, detailing upcoming ASX listings via IPO and RTO.
In what could be one of the largest listings for some time, oil and gas supplier Quadrant Energy is progressing towards a second half IPO that may be worth up to $3-4bn. Lead managers are currently being sought to list the company, which is considered one of the largest in the sector and supplies over 40% of WA’s domestic gas. Macquarie is touted as one of the banks to handle the float, with UBS also tipped to join.
Mining explorer Golden Mile Resources released its prospectus detailing multiple project areas that contain prospects for gold, nickel and cobalt. The company intend to raise $4.5m for a market cap of $10.5m.
The Benjamin Hornigold LIC float attracted more coverage as the fund’s manager, Stuart McAuliffe, tipped a European bull market on the back of a prediction that Emmanuel Macron will win the French Election. Furthermore, the company announced on Friday that its offer closed “substantially oversubscribed”. Also emerging as a LIC play, Wilson Asset Management announced plans to list a new “microcap” fund in the coming weeks dedicated to businesses under $300m in market cap.
As usual, technology plays were also in focus. Internet-of-Things business Freestyle Technology spruiked its plans for an ASX listing after securing deals throughout Asia. Funds raised would help drive growth of the Macquarie backed business, also setting it up for entry into the Indian market. Similarly, medical software provider Lorica Health, who analyse private health insurance claims, has begun to mull an IPO.
Believing the cannabis boom is a longer term trend due to “uncommercial” laws in Australia, Ecofibre will target an ASX IPO next year. The business currently operates in the US and has landed Countplus’ founder Barry Lambert as Chair.
In the retail space, Retail Apparel Group confirmed that Greta Thomas and Graham Mahoney would join Andrew Reitzer on the board of the retailer.
Lastly, a few days away from listing, Bingo’s CEO talked up the company’s project pipeline, including expansion into Victoria during 2017/18.
Some of the businesses that formally opened their books for an IPO or RTO include:
- Base minerals explorer, Alderan Resources – $6.5-8.5m
- Waste management and recycling business, Bingo Industries – $439.5m
Trade sale and Private Equity interest
The IPO for Zip Industries looks set to edge out a trade sale, with shares set to be priced between $2 and $2.67 per share. An institutional bookbuild is set for next week (May 3rd), with a prospectus to follow on the 5th of May detailing the new capital structure. Meanwhile, the company is showcasing its manufacturing facilities to investors and will try lock in international anchor investors prior to the bookbuild.
Lattice Energy was on show to bidders as part of a confidential briefing, with rumours of a trade sale building. Senex is reportedly one of the suitors, while Morgan Stanley is working on behalf of another potential bidder.
An IPO has almost been ruled out for Super Amart as Amazon’s entry nears and momentum builds behind speculation Steinhoff could acquire the business.
Despite not specifically commenting on the prospects of an Officeworks IPO during its 3Q results presentation, Wesfarmers subsequently drew reference to an open IPO window and the value it would like to deliver to its shareholders. Nonetheless, in the event of a public listing, Diane Smith-Gander will lead the business as Chair, and Morgans will offer the float to its retail investors. Analyst research is due in the coming days.
Morgan Stanley was appointed to help I-Med Radiology consider its options between an IPO and trade sale. The business, owned by European private equity owners, previously tried to list 2 years ago. According to analysts, an IPO is likely to be pitched on the opportunities surrounding expansion and market consolidation.
Finally, the board for QSR is being finalised, with an investor roadshow scheduled in 4-6 weeks.
Uncertain IPOs, setbacks and cancellations
Having recently postponed a tilt at the ASX, Barminco has detailed a unique ‘equity claw’ would allow it to repay some debt if listing within 2 years. The provision appears to lend weight to a 2018 float but uncertainty still looms.
After pulling the pin on an IPO last year, shopping engagement and analytics app Sprooki has been acquired by Invigor Group – ending the possibility of an ASX listing.
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