Our latest roundup covers news from March 3 – 16, detailing upcoming ASX listings via IPO and RTO.
URB’s LIC received an investment grade rating on its way towards an April 7 listing. The fund is angled towards property and equities involved in urban regeneration, with an initial seed pool of property worth $59m secured. Washington H Soul Pattinson will take up a cornerstone position in the offer.
In the resources sector, Alderan Resources announced its intent to raise $8.5m via IPO. The US copper explorer is eyeing an ASX listing in May.
IPO hopeful Domain signalled that leads to mortgage and insurance providers could form a new pillar of growth for the company.
Accountants Kelly + Partners are currently ramping up their IPO plans ahead of investor meetings in April.
The cannabis investment story has spurred The Hydroponics Company to seek an ASX listing. Upon opening, the offer attracted significant demand.
Tech plays also made the news courtesy of WhiteHawk, Rokt, CSB Engage, 20Four and Audinate. Each business is at a different stages in terms of raising capital, but take confidence from high profile backers that are supporting them. In an interrelated space, medtech provider Accuvein hired Moelis and Bell Potter to help the US company eye $62.6m in funds, and a May 1st listing.
Among other broker appointments, Morgan Stanley was asked to join UBS in helping PNG-listed Bank South Pacific list on the ASX. The bank is eyeing liquidity for its existing holders via a $300m divestment. Analysts expect a valuation of 6-7x earnings and 12% yield.
Barminco appointed UBS to help with a float that has fund support and sector strength behind it.
Once again in the middle of the action, UBS was selected with Merrill Lynch to aid APN Property. The banks will help the company launch an IPO that includes Puma Energy service stations.
Infrastructure Services Group Management has engaged Macquarie and Morgans for its $150m IPO, with a roadshow around the corner.
Several companies also had key stakeholder meetings in the last fortnight, including:
- Waste management business Bingo Industries, which held site tours for fund managers
- Mens clothing retailer RAG unveiled senior management to fund managers. They also spruiked their store rollout plan, as well as double digit sales and EBITDA growth
- HR tech business ELMO is conducting a non-deal roadshow
- Super Amart is hearing pitches from bankers
Some of the businesses that opened their books for an IPO or RTO include:
- Antimicrobial product developer, Zoono (RTO via Goldsearch) – $7-10m
- Precious metals explorer, Ausmex Mining Group (RTO via Eumeralla Resources) – $4-6m
- Oil and gas explorer, Helios Energy (RTO via New Horizon Coal) – $12-18.8m
- Private social network, Tinybeans – $6.5m
- Mobile health technology provider, G Medical Innovations – $10-12m
- Home security products manufacturer, Scout Alarm – $5-6m
- Listed fund, Plato Income Maximiser Limited – $75-330m
- Ethically screened listed fund, Morphic Ethical Equities Fund Limited – $38.5-220m
- Mobile wireless comms solution provider, Mobilicom – $7.5m
- Medicinal cannabis developer, The Hydroponics Company – $5-8m
- Underwater drones and smart tech provider, Aquabotix – $5.1-7m (broker offer)
Trade sale and Private Equity interest
The biggest story from the last fortnight came yesterday, when Alinta, which had been undertaking final preparations for a tilt at the ASX, struck a deal with Hong Kong business Chow Tai Fook Enterprises. The deal, valued north of $4bn, will see the company sold in its entirety via trade sale, scuppering investors’ hopes of a public listing.
Officeworks recently engaged lawyers as well as JP Morgan and UBS, suggesting an IPO could trump a trade sale. Nonetheless, a former MD of the business believes spinning it off could allow it to thrive.
Investors have asked Origin to retain a stake in a prospective float of Origin Energy, but a trade sale remains one outcome.
Ocean Grown Abalone is mulling a $10m IPO or private equity disposal to help the business expand interstate and increase its processing capabilities.
Finally, having visited Hong Kong and London, trade sale contender Zip Industries fronted local investors touting the possibility of an IPO.
Uncertain IPOs, setbacks and cancellations
Citing a slump in the GBP and renewed Chinese investor interest, Accolade Wines’ IPO was formally dumped.
In other news, NZ aged care business Oceania Healthcare has been hampered by a reported lack of interest among local investors. The healthcare provider intends to open 1674 new residences throughout NZ.
Rounding out the news, Redcape’s divestment remains uncertain as the company waits for potential suitor Woolworths to restore its business performance.
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