Float Hopeful Bravura Solutions valued at between $353m and $425m

Bravura Solutions is expected to list as a company worth between $353 million and $425m, according to analysts from Macquarie.

Goldman Sachs analysts have ascribed a value of between $358m and $429m to the company, meanwhile, equating to between 16.8 and 20.2 times it’s forecasted annual net profit.

Bravura is launching its analyst marketing roadshow today ahead of an initial public offering before Christmas.

Research from analysts at the investment banks working on the deal is being distributed today, according to The Australian’sBusinessNow blog.

The company provides software to the wealth management industries globally, with 50 per cent of its revenue generated from its flagship Sonata product, which has at least 70 blue chip global clients.

Its hopes are to capitalise on large and rapidly growing addressable markets that are undergoing change, with its compound annual earnings before interest, tax, depreciation and amortisation growth rate at 27 per cent.

Bravura has invested $100m in the wealth management administration product Sonata.

Macquarie’s earnings for the company equate to 16.6 and 20 times the group’s forecasted annual net profit and between 14.5 and 17.5 times its earnings before interest and tax.

Once listed, Bravura will have a dividend yield of between 3.5 per cent and 4.2 per cent, with a 70 per cent cash payout.

The group also expects to grow earnings on the basis that it will secure new clients for Sonata, with 25 per cent of new revenue for the 2017 forecasted financial year from new customers for the product.

It comes as spending by companies on information technology in various global markets, including Europe and Asia Pacific, is forecasted to grow at 7 per cent annually to 2020.

For fiscal 2017, Bravura expects to secure $191.3m in annual revenue and $32.7m in EBITDA.

Bravura has Macquarie and Goldman Sachs as joint lead managers, while Fort Street is the company’s adviser.