Wagners hopes to raise nearly $200m via ASX float

ANALYSTS are predicting massive interest from investors in Wagners, as the Toowoomba business prepares to offer more than 72 million shares on the ASX.

Wagners chairman Denis Wagner.

ANALYSTS are predicting massive interest from investors in Wagners Holding Company, as the Toowoomba business prepares to list on the Australian Stock Exchange.

The company hopes to raise nearly $197 million through the offer of 72 million shares at an initial price of $2.71 when it floats 45 per cent of the concreting arm of its business. 

Wagners Holding Co, which has an indicative market capitalisation of $437 million, is expected to list on the ASX on December 8.

Dornbusch Partners' investment advisor Andrew Wielandt said interest in the shares would be strong, considering Wagners' profit forecast of $23 million for 2018 and the state of Australia's civil construction industry.

"It gives Toowoomba locals a chance to share in the Wagners success story, but only with concreting business," he said.

"If you look at the big picture, Australia is on an infrastructure boom, and we're seeing that here.

"There are billions in infrastructure projects coming along, starting with toll roads in Sydney, knocking down sporting stadiums, and the Toowoomba Second Range Crossing, just to name a few.

"When you've got this wave, it's a perfect time to invest."

In the prospectus made available earlier this month from lead managers Credit Suisse and Morgans, Wagners said it had an advantage over its competitors like Boral and Adelaide Brighton because of its earth-friendly concreting plant in Wacol and composite fibre technology operation at Wellcamp.

Chairman Denis Wagner told The Chronicle he was thrilled to see more investors join the business with Wagners Holdings expected to enjoy continued growth.

"We're excited about the opportunity the listing will create for Wagners, the opportunity to bring in a wider range of shareholders and investors into our business," he said.

"It has gone very smoothly so far and Morgans and Credit Suisse have run the process and done a very good job."

HOW INVESTORS CAN GET INVOLVED

ALL potential shareholders can buy shares in Wagners after it lists on December 8, which can be done through a stockbroker.

Prior to the float, only clients of Credit Suisse and Morgans will be able to purchase shares, along with institutional investors.

The dividend yield is set at 3.2 per cent, which Dornbusch Partners' investment advisor Andrew Wielandt said suggested Wagners would put the majority of profits back into growing the company.

"Wagners is a growth company - you're buying Wagners because you're backing them to grow, not because of the dividend," he said.

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Originally published as Wagners hopes to raise nearly $200m via ASX float