Mason Stevens the latest to push back listing plans

Quick service restaurant Guzman Y Gomez is earmarked for listing next year but could opt for a trade sale instead.

Yet another initial public offering prospect appears to be set to push its listing plans into the new year, with the latest being Mason Stevens.

DataRoom understands that the investment administration firm has had positive feedback from the market.

But those behind the listing believe they are likely to get a better result if they hold off a few months, until next year when trading conditions are likely to improve.

Investors are largely sitting on their hands, piling money into safe defensive stocks such as BHP and the banks until they get a clearer picture on the timing of an economic recovery.

Mason Stevens, advised by Barrenjoey and Morgans, is pegged at a value between $200m and $500m and joins industrial company Molycop and airline Virgin Australia, both owned by private equity, in opting to move their listing plans back by up to a year.

That leaves payments company Cuscal, which plans to raise between $366.7m and $378.4m. Cuscal hopes to list with a market value of between $513.9m and $531.4m and sell shares at between $2.50 and $2.60 through Bank of America, Ord Minnett and Bell Potter.

It has so far been met with a lacklustre response.

While it’s not considered a bad business, most believe it is a tough sell in the current conditions and will only be taken up by investors at a cheaper price and a smaller selldown.

Then there’s quick service restaurant Guzman Y Gomez and data centre operator Airtrunk. While both are earmarked for listings next year, most think a trade sale will be the ultimate outcome, with private capital hungry for attractive opportunities.

Working on the listing of Guzman Y Gomez are Morgan Stanley and its part owner, Barrenjoey.

Market experts believe the best buyers for such quick service restaurants are based in the US, where several deals in that sector have recently transacted. This includes the sale of Subway by its founding families to Roark Capital for $US9.6bn ($15.2bn).

Barrenjoey bought an 11.6 per cent interest in the Guzman business for up to $146m from joint venture partner Magellan last year, and other owners, including private equity firm TDM, will be angling for top dollar on the prospect of an earnings list through US expansion.