NSW-based construction materials, equipment and services company Maas Group will raise $144m for its initial public offering as it heads to the boards with a $530m market value.
The company will sell shares at $2 each and the business will be worth $608m including debt.
The pricing equates to 9.4 times the group’s earnings before interest, tax, depreciation and amortisation during the 2020 financial year and 15.7 times its net profit.
Maas Group reported $64m of EBITDA in the 2020 financial year.
Fund managers were told that the interest in the cornerstone process was from high quality institutions, with demand in excess of available stock.
About half the deal, excluding the employee offer, which was already committed, had already been allocated.
Dubbo-based Maas Group was founded in 2003 by Wes Maas, who plans to retain around 55 per cent of the company after the IPO, while other founding shareholders will retain about 15 per cent.
Pre IPO convertible notes will convert to around $23m of shares at the IPO, which effectively takes the offer size to $167m.
The company will use $82m to reduce debt and $62m is part of the secondary selldown by the founding shareholders, taking the free float to about 25 per cent.
Maas Group is understood to have been embarking on a cornerstone process, with meetings with investors for that process starting on Monday.
The management roadshow begins next week.
It comes after DataRoom flagged on Friday that the company was looking to list at between 15 and 16 times its net profit as the cornerstone process unfolded.
Moelis and Morgans are working on its float plans, which have been on the agenda since last year.
Earlier expectations were that the company’s market value could be about $500m once listed.
Maas Group has tangible assets worth $340m, including 20 quarries and a large pipeline of housing lots, which drives demand for services in other parts of its civil construction and equipment hire business.
Among its areas of service are plant hire, civil construction and property development.