Our latest roundup covers news from September 1- 17, detailing upcoming ASX listings via IPO and RTO.
Consumer Discretionary and Staples
After an attempt to float Officeworks earlier this year failed, Wesfarmers is said to be receiving proposals from banks surrounding a larger float that would also include Kmart and Target. A combined entity, which would be worth upwards of $6bn, comes as each company approaches peak operating value.
UK online takeaway food marketplace Appetise hopes to raise up to $6.8m. The business has 90,000 users but only $50k revenue. Appetise is confident it can gain market share, with the ASX chosen due to its favourable reputation for smaller IPOs and informed investors.
Elsewhere, and Fremantle Octopus last month opened a $4.95m pre IPO, Rockpool Dining Group is concerned around changes to 457 visas, and Chinese food and beverage retailer Bojun Agriculture plans to raise $7.2m-$12m to expand, upgrade and conduct research.
The medicinal cannabis sector was back in the spotlight, as two companies spoke about their IPO aspirations. First, Elixinol will focus on its licence applications, scoping studies and US operations before a potential float within a year. Pet focused therapeutics business CannPal has begun a local roadshow for its $6m IPO, hoping to tap into a $29bn global market.
Wearable health device app developer WellteQ has seen its sales surge. The company has raised $1.2m in seed funding, with international expansion ahead.
Resources and Energy
Queensland gas explorer State Gas has launched a $5m IPO, with its projects deemed economical due to higher gas prices and established infrastructure.
Peel Mining will spin off its gold project at Apollo Hill into a new IPO, Saturn Metal. As part of the divestment, $7m will be raised via shares priced at 20c each.
Morgan Stanley was appointed to help EnergyAustralia bid for IFM Investors’ power stations. An IPO is viewed as a potential outcome from the advisory role.
With its share price down by around half its value since an IPO earlier this year, MetalsTech is considering spinning off its cobalt assets into a new float, iCobalt.
Utilities, Materials and Industrials
Morgans and Credit Suisse helped Wagner front investors. The building materials business is being valued around $500m, and presented with low debt and owners willing to retain a majority stake.
In other news, Calix, a developer of neutralising sulphuric acid compounds, is mulling a $15m-$20m IPO to expand production facilities.
Telecoms and Information Technology
Backed by ex Vocus directors, wireless internet provider Uniti is looking for an IPO adviser after boosting sales 80%.
Vodafone NZ is also set to complete a trans-tasman dual listing, with UBS, Deutsche Bank and Bank of America Merrill Lynch leading the IPO. A roadshow is expected in the coming weeks, followed by a listing likely to be early next year.
GeoOp will focus its listing on the ASX after frustrations with support from the NZX. The mobile workforce management software provider expressed a preference for a main board listing.
Nano satellite IoT tech business Myriota is considering an ASX IPO. The company is set to launch more satellites next year, with a potential float a distinct possibility.
Rounding out the sector, Engage: BDR, a US adtech company, has landed a founder of MySpace. The business will pursue a $6m raise to list on the ASX, eyeing Asia Pacific acquisitions.
Financials, Funds and Real Estate
Fairfax will run a vote on Domain‘s IPO in early November. Domain will enter the finance space as part of its strategy to drive new growth, and also rounded out another series of Board nominees.
Magellan will wear up to $73m in costs if it reaches $1bn as part of its LIC funding target, while analysts have raised concerns that early dividends could be funded by capital. Also in the spotlight are an absence of franking credits and a focus on foreign markets, which could both pose challenges to Magellan’s yield target.
Shifting the focus, and a legal challenge between Pacific Equity Partners and its former employees isn’t seen likely to rock potential IPO plans, although these still remain speculative at best.
Some of the businesses that formally opened their books for an IPO or RTO include:
- US colon cleansing healthcare provider, HyGIeaCare – $10m-$15m
- Pet pharmaceutical business, CannPal Animal Therapeutics – $6m
- Agricultural fruit produce manufacturer, Bojun Agriculture Holdings – $7.2m-$12m
- Oil and gas explorer, Doriemus – $2.5m-$3.5m
- Accounting and business intelligence software provider, Cape Range – $4.5m-$6m
- Queensland gas operator, State Gas – $5.25m
- Cast iron and vehicle component manufacturer, Piston Machinery – $15m-$20m
- Minerals explorer, Nelson Resources – $5m
- Online takeaway food marketplace, Appetise – $4.8m-$6.8m
- Digital media and advertising company, Engage:BDR – $4m-6m
Dual Track Sales
PEXA’s IPO ambitions have been shifting rapidly in recent days, after the digital settlement group looked likely to be on track for an early 2018 float. Pitches were put forward by banks, however, a delay among the states to enact mandatory digital settlements could push out proceedings. Adding to the confusion, Baring is said to be examining the company with a view to potentially tie it up with SAI Global.
Finally, Origin’s production venture purchase from a Malaysian partner is set to boost the attractiveness of dual track nominee Lattice.
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