Onsite Rentals has been valued at up to $700m according to analyst research.
It comes as the group plans to head to the boards for an initial public offering through Macquarie Capital and BAML.
BAML valued Onsite on a discounted cash flow basis suggesting that the business was worth between 5.5 and 7 times its forecasted earnings before interest, tax depreciation and amortisation for the 2020 financial year, while Macquarie believes it it is worth between 4.5 and 7 times.
The company has been owned by Next Capital and is now controlled by US debt investors, with the business leveraged at one times its EBITDA.
Analysts say that the industry average is 2.3 times.
EBITDA for fiscal 2020 is expected to be $99.1m.
Analysts believe that there are no direct listed comparables for Onsite Rentals, although fund managers suggest that the group is akin to other operators in the mining services space, such as Emeco or Coates Hire, owned by Seven Group Holdings.
They also draw comparisons to Kennards Hire.
The business offers rental equipment to businesses with 33 branches across Australia and a fleet of 70,000 assets, primarily for access, power and site accommodation.
Market share currently sits at 7 per cent and the business services the resources, infrastructure, commercial and industrial property industries.
About 46 per cent of its revenue is generated from the resources industry, of which more than 70 per cent is from long-term production and maintenance contracts with major mining companies, and about 22 per cent is from infrastructure, predominantly on the east coast.
Customers include BHP Billiton, Rio Tinto, South 32, CIMIC, Woodside, Shell, Origin and construction firm Multiplex.
Chief executive Mike Foureur previously worked for Coates hire.
The company has EBITDA margins of more than 30 per cent.
Onsite Rentals has made attempts to list in the past, but the deal was pulled at the time by its private equity owners.
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