Huon IPO tipped to reel in $455m

THE founders of Huon Aquaculture are expected to pocket up to $25m in ­initial proceeds through the float of the business this month.

Huon Aquaculture co-founder Frances Bender is set to gain $25m from next month’s IPO. Picture: Nikki Davis-Jones

THE founders of the country’s second-largest salmon producer, Huon Aquaculture, are expected to pocket up to $25 million in ­initial proceeds through the float of the business this month.

Peter and Frances Bender started their Tasmanian-based farming operation 28 years ago and the business is now earmarked to debut on the ASX on October 23 as one worth between $415m and $455m.

A bookbuild for the initial public offering of Huon began yesterday and will be finalised today. Huon is raising $125m with shares to be priced in the range of $4.75-$5.40 in an IPO where ­investment bank Credit Suisse is the lead manager.

According to information distributed this week on the deal, the Benders may sell down up to $25m of their shareholding in Huon, but the final decision on the size of their divestment was to be made at the conclusion of the book build.

The remaining stake they will hold in the business will be subject to escrow until the release of the 2015 financial year results.

The couple are not the only business founders expected to reap major profits in the weeks ahead. Founders of aged care giant Regis, Ian Roberts and Bryan Dorman, are believed to have injected less than $100,000 into the business when it began 20 years ago and it is floating on the ASX next week as one worth $1.1bn.

However, they did reinvest in Regis when they bought back Macquarie Group’s 44 per cent interest last year.

The owners of law firm Spruson & Ferguson — to be renamed IPH — are also gearing up for a windfall, with their company soon to float as a $331m business.

Huon controls 40 per cent of Australia’s salmon market, with rival Tassal Tasmanian Salmon controlling 50 per cent and Petuna seafoods holding the remaining share.

Veteran investor Simon Marais, managing director of Allan Gray Australia, is among those supporting the IPO.

However, some have been deterred by the long lag time between investment in the business and returns achieved.

With between 84 million and 87 million securities on issue, the company’s enterprise value is expected to be between 7.25 times and 7.99 times its operating earnings before interest, tax, depreciation and amortisation forecast for the 2015 financial year.