Software solutions provider Bravura has priced its initial public offering at a range of between $1.68 and $2.17 per share, as the Ironbridge Capital-owned group revises its earnings forecasts on the back of the falling British pound.
It comes as the group plans to raise between $194m and $228m, with vendor Ironbridge to sell half of its interest.
Earlier, the range was $1.65 per share to $2.16 but the numbers were updated this morning, sources said.
The pricing range equates to between 10.4 and 12.6 times its forecast annual earnings before interest, tax, depreciation and amortisation on an enterprise value basis.
With respect to forecast net profit, the range is between 16.2 and 19.4 times.
It comes as Bravura revises down its earnings prediction on the back of a dramatic move in the British pound and is now basing its earnings on a currency exchange rate of $1.60 to the pound sterling rather than $1.75 as previously predicted.
It is understood that the company is maintaining that the currency impacts will be offset by more lucrative fee earnings generated from its wealth management business.
Also contributing is an improvement in cost reduction in the funds administration business.
Overall, earnings before interest, tax, depreciation and amortisation for fiscal 2017 are expected to hit $32.3 million compared to $32.7m previously.
The comparable for the company, GBST, trades at 18 times its forecasted annual net profit, based on the currency exchange ratio of $1.60 to the pound.
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