Our latest roundup covers news from June 16 – July 2, detailing upcoming ASX listings via IPO and RTO.
Consumer Discretionary and Staples
The parent company of Chinese daigou business AuMake, ITM International, will conduct a $6m reverse takeover through Augend. AuMake currently has 5 stores in Sydney, but intend to increase this number to 20 within a year. ITM will look to tap investors for $6m, while fund manages value the business up to $17m.
Former IPO hopefuls Redcape and Dixon Hospitality are both on the menu again, as corporate activity gives them newfound optimism. Hotel and pub group Redcape was purchased by Moelis for $677m and may be a 2018 float candidate. Private equity business KKR has taken a majority stake in Dixon. KKR will help Dixon expand before a second attempt at listing on the ASX.
Elsewhere, the IPO for Franchise Retail Brands has been delayed as auditors review the company’s books. In the meantime, the hospitality business recently purchased 53 Single Inn outlets to add to its restaurant portfolio. Also engaging in acquisitions, Munro Footwear Group, with its status as Australia’s largest footwear retailer, remains open to a future IPO.
Materials and Industrials
3D technology provider Titomic, who has developed a Kinetic Fusion process with the CSIRO, will raise $6.5m. The IPO, run by PAC Partners, will provide the company with a market cap of $22m and would see Titomic list later this month.
Solar-powered camera business Spectur launched its $4.5m IPO. With more than $1m in revenue from commercial and industrial clients in the Western Australian market alone, the security solutions business has flagged expansion to the east coast as one of its priorities.
Also in the security sector, albeit targeting the domestic market, Scout is looking to list with the backing of a US$250k investment from Amazon. The US startup currently brings in more than $2m p.a. in revenue, and soon expects to be cashflow positive.
Lastly, ecommerce software business BigCommerce flagged plans for a long-term ASX listing after notching up $100m p.a. in revenue.
Financials, Funds and Real Estate
Action in this sector was more prominent than usual, particularly once dual track sale activity is considered. In the financial sector, Evans Dixon, the merger between Evans & Partners and Dixon Advisory, could target an ASX listing within 18 months. Also involving Evans & Partners, the financial advisory firm filed a prospectus for its Global Disruption Fund, via Walsh & Company Investments. US tech stocks may feature prominently as the business talk up their prospects.
Next up, speculation was mounting that one of the key backers of investment solutions and superannuation advisor Netwealth could look to sell down their stake.
Investment platform owner Powerwrap was back in the news after delaying an IPO late last year. Recently rejecting 2 trade proposals, the company is now expected to file for an IPO later this year after securing $19m from existing holders and new institutional support.
With the roadshow for APN’s convenience REIT listing set to start today, the company settled on a $3 price for each of its securities under the offer. Featuring 67 properties from various oil companies, and an estimated yield of 6.5%, brokers are spruiking the REIT for its defensive cash flow. The former head of Merrill Lynch’s investment banking division will oversee the business as chairman.
Also in the business of real estate, Domus intend to make a second attempt to list its US multifamily REIT fund on the ASX next year after raising US$20m.
Some of the businesses that formally opened their books for an IPO or RTO include:
- Gold explorer, Oasis Gold Limited – $5m (RTO of Erinbar)
- Base metal explorer, Pursuit Minerals Ltd – $5m-$6m (RTO of Burrabulla Corporation)
- Audio networking technology provider, Audinate – $21m (also listed)
- Gold explorer, Nusantara Resources – $15m-$20m
- Mobile and cloud customer relations technology provider, Mobecom – $5m-$9m (RTO of Waratah Resources)
- Global disruption fund, Evans & Partners Global Disruption Fund – $50m-$150m
- 3G/4G solar-powered security technology provider, Spectur – $4.5m
- Mineral explorer, Prospech Limited – $5m-$7.5m
- REIT, APN Convenience Retail REIT – up to $174.5m
- Engineering consulting business, Synertec Corporation Limited – $75m (RTO of SML Corporation)
Dual Track Sales
Non-bank lender Bluestone Group announced that it would conduct a dual track sale. The company currently holds $50m in Australian net assets, and also operates in the UK and Ireland. With that said, the conditions of the housing market are expect to keep suitors watching cautiously. Meanwhile, ANZ is understood to be assessing 5 trade bids for its wealth management business, but hasn’t ruled out an IPO.
The ongoing uncertainty surrounding Lattice Energy continues. With its roadshow finished, most funds are said to be receptive to an IPO, but concerns surround the gas contracts the company has with Origin. Accordingly, insiders continue to expect a trade sale will be the preferred outcome.
Credit Suisse will help Australia and New Zealand’s third largest flexible packaging business, Integrated Packaging Group, run a dual track sale. The private equity owned company could be valued up to $120m, with several trade buyers interested.
After Craveable Brands set a price range for its IPO, and received a $130m debt facility from NAB, Morgan Stanley and Goldman Sachs were forced to pull the float. Despite an initial yield expected to be upwards of 9%, poor sentiment in the market and directed towards the company’s comparable peers was cited as the main reasons for the cancellation.
Fruit and vegetable producer Nutrano also joined the list of IPO casualties. After meeting fund managers and setting price terms for its $45m listing, the company withdrew its float due to low investor interest. The capital raise would have given Nutrano a market cap of nearly $100m.
Finally, following on from plans to diversify its operations, Wesfarmers has simplified the capital structure of Officeworks. The move to buy back preference shares is designed to simplify proceedings if an IPO re-enters discussions.
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