Our latest roundup covers news from February 3-16, detailing upcoming ASX listings via IPO and RTO.
For the second time, underground mining contractor Barminco may pursue ASX listing plans later this year. Barminco could seek to take advantage of improved sentiment within its industry and the encouraging performance of its peers in recent months. 96% of Barminco’s projected revenue lies under existing contracts, however they have cited refinancing obligations and capital market stability as watchpoints. An IPO could see the company valued at over $600m.
Eastern coast service station restaurant chain Oliver’s Real Foods engaged Morgans for a 5m raise, which it will use to buy back several franchised stores. The raise is said to be one part of efforts to secure $20m before divesting 30% of the business via IPO. Thereafter, Oliver’s expect to embark on a high growth store rollout.
Real estate disruptor ServTech intend to target the east coast after success in WA. Ranked 8thamong BRW Fast 100 companies, the business differentiates itself by allowing agents to retain commissions.
Corporate training provider Re-tech has indicated its $22.5m raise will support material licensing. The business chose the ASX for reasons including: company size, prestige, and partnerships with local content producers.
Separate LICs were announced by URB and Contango Asset Management, with the former focusing on equities and property, and the latter targeting global securities.
US contact lense maker Visioneering Technologies will raise $33.3m at 42c ahead of a March listing. The business, valued at 88.2m, services multi-billion dollar markets for children with near-sightedness, and adults with age-related loss of near vision. Cornerstone investors are currently being sought.
1414 Degrees is expected to raise $10m via IPO in coming months, with the company spruiking its silicon storage devices said to replace lithium batteries.
The ASX could welcome another HR tech play, with longstanding business ELMO looking to conduct a $40m IPO. The company believe they differ from their listed peers given their 15 year operating history, 500+ clients, 3% market share in ANZ, plus positive cashflow and EBITDA.
Chartered accounting business Kelly and Partners appointed Morgans to help prepare for investor meetings with small cap fund managers. The business would require existing shareholder approval, but would be valued up to $50m.
$1bn+ floats were also in the headlines from Alinta and Bank South Pacific, with the former set to offer yields of 7-8%, and PNG’s largest bank planning investor meetings for April.
Some of the businesses that opened their books for an IPO or RTO include:
- NT base metal explorer, Todd River Resources -$5-6m
- Tech water treatment provider, mem – $3.75-4.5m
- Fund Manager, Switzer Dividend Growth Fund –min. $10m
- Smart device manufacturer, Quantify Technology – $3.5-5m
- Lithium explorer, Marquee Resources – $3.5m
Trade sale and Private Equity interest
Having previously requested bids for the IPO component of its dual trade sale, Zip Industries appointed Macquarie, UBS and Citi. The business has been pitched as both a defensive and growth business, valued at up to 25x earnings. Market observers suggested the business has already received one trade offer in excess of $500m.
Macquarie features again with its efforts to help online-only electricity retailer Click Energy run a dual track sale. The retailer, which has grown customer numbers 65% p.a. over the last 5 years, is said to be attracting interest from peers, utility providers and private equity players.
With Origin Energy looking to float oil and gas assets worth $1-1.5bn, said assets were hit with a partial writedown. Meanwhile, Beach Energy emerged as a prospective suitor.
$1bn+ cancer care provider IconGroup began its trade sale, but hasn’t ruled out an IPO.
Retail Apparel Group is mulling its options including a trade sale, and the prospect of an IPO after the company signed the former CEO of Metcash.
Wesfarmers signalled it could opt to sell or float Officeworks for up to $1.5bn. A non-deal IPO roadshow will start in March.
The IPO for Accolade Wines has been postponed for a minimum of 6 months, with current private equity owners yet to decide on a course of action to take with the business. Trade buyers could surface in the meantime.
With a deal reached between Liberals and One Nation in WA, and Labor opposed to divesting the business, Western Power’s float now appears increasingly unlikely.
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