Wagners ASX float builds momentum with east coast meetings

Wagners Group director Denis Wagner. (Picture: Peter Wallis)

Plans for the float of Queensland-based building materials company Wagners appear to be ramping up, as the family-owned company embarks on meetings with prospective equity investors in Melbourne today.

Investment bank Credit Suisse and broker Morgans is working for the company on the potential plan to embark on an initial public offering on the Australian Securities Exchange.

Based in Toowoomba, the Wagner brothers — John, Denis, Neill and Joe and their father Henry — have worked since 1989 to transform the Wagner Group into one of the country’s largest privately-owned building materials and mining services companies.

Should Wagners become a public company, some estimate it could be worth about $500 million, excluding its infrastructure assets.

Meetings will begin today in Melbourne before management and its advisers head to Brisbane tomorrow and later Sydney as part of the company’s non-deal roadshow.

The understanding is that the family plan to retain between 50 per cent and 60 per cent of the shares after the listing of the company, which is expected to have low levels of debt.

From its beginnings with three trading divisions — Wagner concrete, quarries and transport — the company has expanded to include cement, fly-ash and lime, reinforcing steel, on-site concrete supply, contract crushing and bulk transport.

It also sells lightweight composite fibre products and dominates the South East Queensland market where major infrastructure projects are earmarked.

The expectation is that the company will raise about $250m if a listing proceeds.

Wagner’s major asset is its cement terminal, which is capable of processing up to 800,000 tonnes of cement annually.

Currently, analysts estimate it produces about 500,000 tonnes.

The Wagners are considering whether to tap the market for cash not long after outlaying $200m to build a new international-standard all-purpose airport at Toowoomba from scratch, in just over 19 months.

Known as the Brisbane West Wellcamp Airport, it opened in November 2014 and can handle airliners up to the Boeing 747. Scheduled services now fly to Sydney, Melbourne, Townsville and Cairns, while Cathay Pacific Airways has looped Wellcamp into a weekly freight run to Hong Kong.