Ventia partners thought to be looking at a market listing

The $1 billion construction services firm Ventia could be the next business to return to public life, with suggestions its owners are considering an initial public offering.

Ventia comprises a collection of services businesses previously owned by Leighton Holdings (now called CIMIC). It is now half-owned by CIMIC and private equity firm Apollo.

Any thought being given to a float is understood to be in the early stages, with no advisers yet appointed.

Apollo has been eager to stage an exit for some time but a sales process run last year by Credit Suisse failed to eventuate in a deal.

CIMIC was believed to be in talks this year to buy back Apollo’s half of the business but the deal collapsed.

It is understood that CIMIC was unhappy about having increased debt consolidated on its balance sheet through an acquisition of Ventia, which may have derailed a possible transaction, understood to be advised on by Barclays.

It is understood Ventia has debt levels that are sizeable.

Macquarie Capital sold half of CIMIC’s stake in Ventia to Apollo in 2014, in a deal valuing the operation at about $1bn at the time.

Ventia provides maintenance and management of critical public and private assets and infrastructure across the telecoms, transport, local government, water, power generation, electricity, gas, healthcare, education, resources and defence industries.

At the time Credit Suisse was trying to sell the business last year, some questioned whether the slower rollout of the National Broadband Network was having an impact on buyer appetite.

However, the time may now be right for an IPO as commodity prices stage a lift and the mining services sector remains in the early stages of a revival after a downturn for some time.

Meanwhile, Blackstone is yet to announce a buyer for its Ixom chemicals business that is up for sale through JPMorgan, despite final bids being received some time ago.

Singapore’s Keppel, advised by Lazard, and another party were thought to be the only two left in the final stages of the competition.

Doubts have been harboured by some as to whether Keppel would be interested in all or just one part of the business — probably the distribution arm rather than manufacturing.

Market analysts have said that Blackstone has had unrealistic price expectations around the business, so many suitors had walked away from what was not considered an operation with strong growth prospects.

Caltex, which is run by the former boss of Ixom, Julian Segal, was looking at the business but is understood to have left the competition as the price commanded was a higher multiple than what Caltex was trading at.