Quadrant Private Equity is believed to be looking to raise about $73m for the initial public offering of its Grays Australia business, taking its market value to about $200m.
It comes after Grays Australia held meetings this week with fund managers in an effort to lock in cornerstone support ahead of its float.
The online auction house is forecasting earnings before interest, tax, depreciation and amortisation of $28.8m for the 2021 calendar year.
It is understood that Quadrant is planning to use the proceeds to pay down debt and for the deal costs.
Earlier, suggestions were that Quadrant had been looking to price the online auction house that it purchased in 2019 for $60m at about $500m.
However, the thinking is that some prospective investors may feel uneasy about the earnings before interest, tax, depreciation and amortisation of $28.8m for the 2021 calendar year.
This is a substantial lift from $23m in the previous corresponding period after the company was a major beneficiary from the global pandemic and also thriving used car sales, which are expected to come off the boil.
Some believe that the private equity firm is keen to raise a nominal amount to create a chance to sell more stock at a later stage.
Working on the listing are investment banks Jarden Australia and UBS.
Grays Australia offers a wide range of business and consumer products online — from motor vehicles, manufacturing, construction and transport to IT and consumer electronics, wine and jewellery.
It describes itself as the largest industrial, auto and commercial e-commerce business in Australasia.
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