The $480m payments infrastructure company Cuscal has lodged its prospectus for its initial public offering and is telling prospective investors that the demand for the deal is more than what is on offer.
A book message sent to investors says: “Indications of interest for the institutional offer and the broker firm offer exceed the deal size”.
The bookbuild for the float is expected to close on November 21 with trading to start on November 25.
Cuscal starts meeting with investors from this Friday as party of its formal management roadshow for its $336.8m initial public offering that, if successful, will be the biggest float of the year in Australia.
The IPO was priced two weeks ago at $2.50 per share, which provides it with a $479.1m market value when it is scheduled to list on the Australian Securities Exchange in December.
This was after a process was launched to lock in cornerstone investors that will commit to the deal up front.
The price equates to 7.7 times its earnings before interest, tax, depreciation and amortisation for the 2025 financial year and a dividend yield of 3.7 per cent.
The IPO will be one of the few to come to market this year as investors remain cautious amid a weaker economy and with rising interest rates.
More Coverage
Crown owner Blackstone fancied to snap up Star
There’s talk that the New York-based private equity firm is once again having some serious conversations in the background about taking over Star Entertainment.
NAB weighs return to Scottish roots
The $1bn-plus sale process for the non-bank lender Scottish Pacific is yet to start in earnest, but there’s one party that has already been at least kicking the tyres.