Analyst research on the value of the Dalrymple Bay Coal Terminal is expected to hit the desks of fund managers on Monday, as initial public offering activity continues to ramp up before the end of the year.
The Queensland terminal was earlier thought to be worth more than $2bn.
While there has been talk about infrastructure investors such as Queensland Investment Corporation buying into the IPO, the asset is expected to appeal mainly to retail investors.
Owner Brookfield is likely to raise about $700m for its IPO, overseen by Bank of America, HSBC, Citi and Credit Suisse.
Co-lead managers include Wilsons, Ord Minnett, Bell Potter and Morgans.
They are understood to have each been tasked with selling about $100m worth of shares, capitalising on their strong retail networks.
The DBCT is one of Queensland’s major metallurgical coal export facilities.
It handles about 20 per cent of the world’s seaborne metallurgical coal trade and will be sold with take or pay contracts in place.
Brookfield’s plan is to offer a yield of about 7 per cent (the earlier hope had been for about 6 per cent) which is expected to be popular with retail investors.
Brookfield gained control of the terminal during the financial crisis in 2009 when it embarked on a $1.8bn recapitalisation of Babcock and Brown Infrastructure, essentially consisting of the DBCT.
The operations are outsourced to a company owned by the terminal’s mining customers, which means that all operating costs are passed on.
Other IPO prospects gathering pace this week include Universal Stores, which is expected to lock in a price for its float by Friday through a cornerstone process with investors. The retailer, which is backed by private equity firm Catalyst and Brett Blundy, is expected to have a market value of close to $300m.
The business is being listed with help from advisers UBS and JPMorgan.
Also embarking on a cornerstone process for its IPO this week is peer-to-peer lender Harmoney.
The company is being listed through Jarden and Ord Minnett and is expected to be worth up to $250m, raising about $60m.
Harmoney will also issue its analyst research on Monday, with a formal investor roadshow launched at the end of the week.
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