Peter Warren Automotive is raising $260 million for its initial public offering with its market value to be at $483 million ahead of the book build on Tuesday.
Shares are to be sold at $2.90 each following a cornerstone process launched for the business.
The price for the float has been fixed at 15 times the company’s estimated net profit for 2021 and owner Quadrant Private Equity will sell down to a 9.4 per cent shareholding.
The Warren family will buy a further $15m in the offer and will own 35.1 per cent of the company once it is listed.
Peter Warren has locked in a price for its float after securing support from cornerstone investors that are providing $200m worth of funds.
The remaining $45m is on offer to other institutional investors.
Working on the IPO are Jarden Australia, Jefferies and Morgan Stanley.
The privately owned dealership group has been operating in Australia for more than 60 years and has 70 franchise operations, with Peter Warren, Frizelle Sunshine Autmotive, Sydney North Short Automotive, Mercedes-Benz North Shore, Macarthur Automotive and Euro Collision all part of its chain.
Other shareholders include the Frizelle Family, Bernard Friend, Mark Weaver and the Perks Shareholder.
The company’s prospectus will be lodged on April 6 and the company is expected to start trading on a deferred settlement basis on April 27.
More Coverage
Jarden deal-makers sharpen their focus on lifting share
This year expect more Australian corporations to reshape their portfolios and private equity to consider floats as an investment exit option, says Jarden Group.
Debt capital markets proceeds up
Debt capital markets proceeds for Australia increased more than 16 per cent in 2024 compared to the previous year as corporates became more confident that inflation was being reined in.