Bell Potter Securities and Evans & Partners have launched a $75 million initial public offering (IPO) for print and marketing company IVE Group.
The brokers aim to sell 37.8 million shares at $2 each in a deal that would value IVE Group at $177.7 million, according to a report in The Australian Financial Review. A spokesperson for Bell Potter confirmed that the IPO was launched on Monday morning.
It's the second time in six months that IVE’s owners have attempted to float the business on the stock exchange.
In June, IVE Group chairman Geoff Selig and senior executives met fund managers in Sydney ahead of the company's first proposed float that was eventually postponed due to “underlying market conditions.” Prospective investors at the time were told that the company was forecasting revenue of $355.7 million and net profit of $19 million in fiscal year 2016.
Selig, who’s out of the country at present, was reluctant to go into detail about the latest move.
“We have been exploring the possibility of an IPO again, as we said we would after our earlier postponement," Selig told Print21. "No decision has yet been made as to whether we will proceed this side of Christmas or not but we’ll have a clearer read of the situation next week.”
According to AFR, the brokers said that IPO funds would be raised at an institutional bookbuild on November 30, with a prospectus to be lodged on December 1 and, if all goes according to plan, the company would commence trading on December 18.
A financial analyst said the final decision on whether to proceed would be made only after the results of the institutional bookbuild became known.
IVE’s owners, including Wolseley Private Equity and the Selig family, would own 57.5 per cent of the listed company, according to terms sent to potential investors. Wolseley would hold a 38 per cent stake while the Selig family would own 15 per cent.
Earlier this month, IVE continued its aggressive expansion policy by acquiring direct marketing agency Digital Logic Marketing Solutions as well as Australia’s largest not-for-profit fundraising and direct communications group, Pareto.