Duratec Australia is understood to have priced its initial public offering at 50c per share as it looks to raise $53 million.
It is understood that the IPO is already well covered, with fund managers attracted to what they are describing as a high quality niche contractor.
The group is working on its IPO with assistance from Euroz Securities and is expected to list in the coming weeks as a business worth about $100m.
The company operates on Australia’s west coast, east coast and in the Northern Territory.
About 60 per cent of its revenue is generated from Western Australia, but is continuing to gain a greater level of market share from the east coast.
Duratec’s main area of expertise is asset remediation, including cladding on buildings and other work with the construction industry.
But its revenue is also generated from defence force contracts, an area which attracts only limited competition.
The company’s three founders remain involved in the business and have been working together for about 25 years.
For the 2020 financial year, the company generated about $21.4m in earnings before interest, tax, depreciation and amortisation.
Coal price not right as Kestrel mine owners seek $4.8bn pay dirt
The owners of the Kestrel coal mine will have to convince buyers to pay about $4.8bn for the mine, but the coal price has fallen about 20 per cent since it was first set to hit the market.
St John of God in discussions over Healthscope leases
The not-for-profit St John of God Health Care has discussed with Healthco Healthcare and Wellness REIT taking over some real estate leases from tenant Healthscope.