The float of hipages has been met with overwhelming demand, as the group prepares to carry out its book build for its initial public offering on Monday.
The online trade services platform has brought forward its book build to Monday, with fund managers told on Friday through a book message that demand for its IPO has exceeded its offer size at the top end of its $2.05 to $2.45 per share price range.
Working on the float is Goldman Sachs, with the group to list with a market value of between $266.5m and $318.5m after undertaking a cornerstone process.
Hipages is looking to raise between $89.1m to $100.4m, with $40m in primary proceeds and $49.1m to $60.1m in secondary proceeds.
News Corp, publisher of The Australian, which owns 30.1 per cent of the online platform, will own 25.4 per cent once it is listed, while chief executive and co-founder Robert Sharon-Zipser will reduce his stake from 10.3 per cent to 6.5 per cent.
Its management roadshow started on Monday.
The bookbuild was to be held on October 22 and the prospectus will be lodged on October 23, with shares to trade on a normal basis on November 16.
The attraction by fund managers to the business is that 90 per cent of its revenue is recurring.
The IPO funds will be used for expansion amid rising demand for home improvements and related services.
Started in 2004, hipages has 36,000 paying trade services in Australia on its platform and will focus on gaining additional scale in the domestic market, which has about 257,000 trade businesses, for about two years before expanding offshore.
It is understood hipages booked revenue of about $50m, growing at about 20 per cent per annum, and underlying earnings of close to $4m in the 2020 financial year.
Comparables are other online classified advertisers such as Carsales, REA Group and Seek.
It recently secured a three-year contract with the NSW Education Department with an option to extend for two years.
Earlier, analysts at Goldman Sachs valued the business at between $280m to $370m.
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