Victorian builder plans IPO

VICTORIAN homebuilder Simonds will start formal investor roadshows for an initial public offering in less than two weeks with an eye for an ASX listing by end November.

The offer, likely to be between $150 million and $200m, will mainly involve a selldown by the founders. Gary Simonds and family, who own the business, hope to retain about 40 per cent post the float.

The group operates two main businesses — Simonds Homes, a major homebuilder in Victoria with 2406 site starts in the 2014 financial year, and a vocational training business, Builders Academy Australia, which offers building and construction courses.

The group makes around $600m in revenue and $30m in earnings before interest, depreciation, tax and amortisation, with the training business contributing 30 per cent of EBIDTA. The business operates on a “capital light” basis by partnering with land owners, enabling it to operate with a small level of gearing.

Simonds joins a robust pipeline of companies firming up IPO plans before the year end to take advantage of investor demand. The float is managed by Moelis & Co and Morgans.