With a strong level of capital markets activity forecast for 2017, the year shapes as an exciting period for investors. We bring you a roundup on IPO news including upcoming ASX listings.
With its second run at the ASX boards, Alinta Energy is currently looking to expand eastern coast operations.
Australia’s largest specialist contractor management business, Infrastructure Services Group Management, is engaging advisers to help the $200m business list later this year.
Forensic technology business Nuix began its executive search for a CEO with ‘IPO skills’, suggesting a $1bn listing is on the cards.
Dementia Care Group announced plans to raise $2m in pre IPO funds and pursue an ASX listing within 2 years.
Godfrey Mantle’s Queensland-based pub and restaurant business could become a hospitality IPO, with Morgans believed to be advising Mr Mantle over the issue. Its Melbourne-based peer, Dixon Hospitality Group, is also preparing for a $300m float.
IPO Offers Opened
During January, several businesses opened their books as part of an IPO, including but not limited to:
- SaaS platform provider, ServTech Global – $6m
- Cobalt producer, Battery Mineral Resources – $10m
- Mineral and metals explorer, Nelson Resources – $5-7.5m
- E-learning and courseware provider, Re-tech Technology – $17.5-22.5m
- Mineral exploration company, Huntsman Resources – $3.5-4.5m
- Wealth management and research business, Fat Prophets – $33m
- Chinese food and beverage distributor, Tianmei – $8-10m
- Infant formula and dried dairy producer, Wattle Health – $6-8m
IPO Setbacks and Cancellations
After delaying an ASX listing in 2016, platform provider Powerwrap faced a challenging start to the year. First, speculation mounted the business could lose a key client accounting for $1-2bn in managed funds. Days later, Powerwrap’s CFO narrowly avoided jail after skipping jury duty to meet IPO investors.
Lithium producer MetalsTech also had to contend with unwanted news ahead of its IPO. In the wake of a longstanding dispute between parties from Atrum Coal, key investor funding was withdrawn.
Latitude Financial Services, a credit card and loan provider, is focusing on numerous deals to diversify its funding mix including a $500m-$1bn credit card securitisation agreement. The company however, was slammed by consumer advocate group Choice for its product offering.
Cancelling plans altogether, Ray White pulled the plug on a potential float.
Trade Sale and Private Equity Interest
Private Equity owned Zip Industries, a water dispensing technology business, began requesting bids from bankers. Bosch and Miele are thought to be eyeing the business which collects $200m+ p.a. in revenue.
Accolade Wines is set to ramp up Chinese production and target wine distributors in that market for $100m in pre IPO funding, but a French private equity firm could swoop in instead.
Laser Clinics Australia will run a dual track process for its 60 laser clinics delivering $50m+ earnings p.a.
Although Origin Energy’s planned $1-1.5bn float of its oil and gas assets remains likely in Q2, private equity players may be circling. Nonetheless, ORG continued its executive search and is mulling a potential third joint lead manager.
An IPO is becoming increasingly unlikely for fruit and vegetable business Freshmax, which could be snapped up by Chinese owners, and Quick Service – the owner of Oporto and Red Rooster capturing attention from foreign PE players.
Message Media and Soprano Design remain on hold since delays last year. Foxtel will wait until it reports in February, and Velocity’s frequent flyer program could be reviewed when its owners partnership ends in April. The WA election is set to provide a mandate for the float of Western Power.
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