Our latest roundup covers news from June 2 – 15, detailing upcoming ASX listings via IPO and RTO.
Consumer Discretionary and Staples
Making inroads in its ASX pursuit, Craveable Brands embarked on an east coast roadshow. The company fronted Morgans retail investor network in Brisbane, with the broker also set to act as a co-lead manager. Lead managers Goldman Sachs and Morgan Stanley initially provided a valuation range of $410-534m. However, roadshow marketing indicates a market cap of up to $400m and a PE range of 11.5 to 12.5x based on FY18 forecast earnings. Private equity owner Archer Capital will retain at least 30% of its holdings.
Fremantle Octopus could join other aquaculture businesses who have recently listed, or are looking to list on the ASX. The company has emphasised “high untapped demand” for its produce. A $5m pre-IPO has been launched to boost growth, while a float is envisaged next financial year.
Also making news, Eagle Health secured a $10m cornerstone investment from South African cosmetics, health products and toiletries business, Amka Holdings. The IPO hopeful looks set to leverage the African distribution network of its key investor.
In the discretionary segment, Crick Auto is eyeing a float of its 12 dealer sites later this year. This comes despite a recent downturn in the share prices for several ASX listed car dealers.
For the most part, news on upcoming IPOs in the health sector was limited. However, the CEO of Sienna Cancer Diagnostics spoke about the biotech company’s R&D prospects, and how funds will be used to grow existing revenue and offer new income streams.
Resources and Energy
Junior explorer Riversgold could raise $5m to $8m, targeting gold in Alaska, Western Australia and Cambodia. The company is led by the former Managing Director of Doray Minerals, Allan Kelly. Mr Kelly has held the tenements in Alaska for several decades.
Gold focused peer, Oasis Gold, released its prospectus for a $5m RTO through Erinbar. Ian Murray has been appointed as Chairman and the explorer will list with an EV of $4.5m.
Looking to become the second diamond producer to list on the ASX, Frontier Diamonds recently raised $4m. It will now look to tap investors for an extra $6m. Funds would be used to target acquisitions of De Beers’ dormant mines in South Africa. As part of the offer, 14% of the company would be offered to new investors.
To finish, Oil and gas producer Quadrant Energy may add an extra joint lead manager to run the company’s IPO.
Materials and Industrials
German-based carbon black recycler Pyrolyx unveiled plans for a $30-35m IPO on the ASX. The company claims to be the first to convert old tyres into carbon black material in an environmentally conscious manner. Already listed in Germany, new funds would allow Pyrolyx to build a US plant and leverage economies of scale. Michael Triguboff and Michael Carapiet are both backing the company.
ELMO released plans for its upcoming listing, which is set to be the ASX’s largest tech float for the year. The HR software provider believes an IPO will increase transparency and allow the business to attract more government clients. Among its first priorities, ELMO will look to increase market penetration in Australia and New Zealand.
Another HR tech play, Schrole, announced it will conduct a RTO via Aquaint Capital. As part of the reverse takeover, $5.5m in funds will be raised. The company focuses on the education sector, connecting teachers and schools in 30 countries.
Audio networking business Audinate released its prospectus to the market. The main details include a price of $1.22 per share, and 29.2% backing from venture capital group Starfish Ventures.
Elsewhere, transaction marketing company Rokt completed the year’s largest local funding round by raising $34.5m. A potential IPO has been nominated as a long term option, with the business confident it could list on any market of its choosing.
Financials, Funds and Real Estate
The latest LIC from Wilson Asset Management surged past its funds target. In total, over $154m has been secured and the fund advised scalebacks are expected for its microcap IPO. Not to be outdone, NY and Sydney hedge fund VGI Partners is mulling a $200m float of its IPO. VGI, which has achieved 15% CAGR since 2009, would absorb set up costs of the LIC.
Meanwhile, Tyro, a startup bank eyeing the Big 4 remains open to the prospects of a long term IPO. To date however, the company has struggled to retain key management personnel.
Also in the funds management space, Netwealth has hired UBS and Credit Suisse for a potential $500m IPO. The investment solutions and superannuation advisor has over 50,000 clients and $13bn in funds under management.
Some of the businesses that formally opened their books for an IPO or RTO include:
- Borate and lithium explorer, American Pacific Borate and Lithium – $12m-$15m
- Mineral resources explorer, EHR Resources Limited – $1m-$2m (RTO of Attila Resources)
- Cancer-focused biotech, Sienna Cancer Diagnostics – $4m-$6m
Dual Track Sales
While Lattice Energy continue to mull its sale options, the company has appointed Downer EDI Chairman Mike Harding, and former Managing Director of Newcrest, Greg Robinson. First round trade bids have been submitted. Beach and Senex are still favourites despite the emergence of Questus Energy.
PEXA continue to prepare for an ASX float, engaging Highbury to review the IPO market. Analysts remain mindful of other prospects including a potential merger with SAI Global.
Uncertain IPOs, setbacks and cancellations
Last but not least, while Officeworks recently shelved plans for an IPO, the company looks set to diversify its operations. The retailer intends to offer new services and take on incumbents in the art suppliers’ category.
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