Just when some thought that the Australian initial public offering market was in hibernation, it’s once again showing some signs of life, and kickstarting the market back into life could be Mason Stevens.
It is understood that the group’s advisers are booking analyst meetings in about a fortnight, ahead of plans to float before Christmas.
The investment administration firm has already met with investors before reporting season to test their level of appetite to invest in the company.
Working on the IPO are Barrenjoey and Morgans and some estimate that its value is between $200m and $500m.
The company is yet to determine the size of the selldown or the price.
But no doubt fresh in the minds of advisers will be the debut of Redox in July, which is trading slightly below its $2.55 per share or $1.3bn issue price.
Some blame this on the small parcel of shares offered, which made the free float limited and harder to trade in and out of, deterring investors.
Mason Stevens will be compared to fund administration businesses like HUB24 or Netwealth that trade at as much as 20 times their earnings, but the Mason Stevens pricing would be discounted to listed competitors.
It offers investment administration and managed account solutions across multi-assets and multi-currencies, and such groups are successful due to their technology enabling a lower cost base.
The group that has over 70 staff working nationally boasts of superior platform technology for financial advisers, offering global investments, contemporary investment solutions and insight into investment options.
The company counts former Iress chief executive Andrew Walsh as its chairman and ex UBS and Westpac executive Tim Yule as its chief executive. Mr Yule joined the company in 2015 and took on the top job last year.
Mason Stevens is owned by its staff and clients, with about 100 individual shareholders.
Founders hold the largest interests.
It is understood that the group is profitable, and part of the logic for a listing is accessing more capital as it looks to fund expansion.
Another smaller company set to hit the boards on October 16 is the Alceon Group private equity-backed childcare business Nido Education, which is raising $99m through Canaccord, MA Moelis and Wilsons.
Shares are being sold at $1, taking its market value to $219.5m and will see major shareholder Matthew Edwards retain a 48.3 per cent interest.
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