TPG to list Inghams Enterprises
TPG Capital will list Inghams Enterprises as a company worth between $1.3 billion and $1.5 billion.
TPG Capital will list Inghams Enterprises as a company worth between $1.3 billion and $1.5 billion.
The poultry producer will sell up to 70 per cent of its holding in the business but no less than 50 per cent.
A prospectus for the company will be released to the market on Wednesday ahead of a float on the Australian Securities Exchange in November.
The pricing range equates to between 13.5 times and 15.5 times the company’s forecasted earnings.
Net profit for Inghams is expected to grow 19 per cent for the 2017 financial year, with volume growth of 7.7 per cent over the same period.
The fruit and vegetable company Costa listed last year at a value that equated to 18 times its forecasted earnings, and the latest pricing range for Inghams places it on a similar footing to its smaller rival across the Tasman, Tegel Foods.
The pricing is also below the average for listed Australian top 200 companies at 16 times their forecated earnings, which average annual earnings of about 7.7 per cent.
Tegel, which listed earlier this year, and Costa, have both been used as comparables for the Inghams float.
However, some argue that Tegel is not a relevant comparable, given that it is one quarter of the size of Inghams and growth in the New Zealand market is far less.
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