Viva Energy has been priced at $2.50 per share for its initial public offering.
The price is at the bottom of the share price range and it will now list as a company on Friday worth about $4.86 billion.
The bookbuild for the float concludes today and the size of the raising is still to be concluded.
Yesterday, bids were in for about $2.9bn at $2.50 per share and with most bids in around that price, the vendor opted to set the price around that level.
The share price range for the book build was between $2.50 and $2.65 per share.
Earlier expectations had been that the group would price around $2.50 per share, with cornerstone investors committing to back the deal around that price, offering up about $1.2bn.
The price for the deal equates to between 6.5 times Viva’s underlying earnings before interest, tax, depreciation and amortisation.
The argument earlier for the price landing at the bottom end of the range had been that Viva shares would only be purchased by investors at a discount to Caltex, which trades at about 7.5 times its EBITDA.
Working on the IPO as joint lead managers are UBS, Deutsche Bank and Bank of America Merrill Lynch.
Already the owner, Vitol Investment Partnership, has enough demand to retain 40 per cent of the company. It had been prepared to retain up to 50 per cent.
The market value range for Viva Energy book build had been between $4.861bn and $5.153bn.
Retail investors have committed at least $585m to the float.
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