Printing and marketing company IVE Group is preparing a second surprise attempt at an IPO less than six months after it cancelled an unsuccessful float on the ASX in June.
Marketing is to begin as early as next week and IVE Group, formerly Blue Star, is expected seek a $150 million enterprise value – down from $200 million last time. The news has surprised institutional investors and suggests that IVE's two big backers are ‘keen for a sale,’ according to a report in The Australian Financial Review.
IVE group is owned by Wolseley Private Equity and the Selig family, which holds a 21.9 per cent share. Executive chairman Geoff Selig has been unavailable for comment. However, fund managers have been told that IVE has retained the services of brokers Bell Potter Securities and Evans & Partners and is finalising details of the offer size, price and structure.
IVE's owners are expected to seek about a $150 million enterprise value and a dividend yield of close to 8 per cent, said the AFR.
The refloat attempt comes less than six months after IVE cancelled a proposed IPO in June that could have been the biggest stock market deal in the printing industry. At the time, Bell Potter and Evans & Partners told fund managers the proposed IPO transaction was being postponed due to ‘underlying market conditions.’
“Whilst there has been significant support for the IPO from a high quality group of investors right through the marketing period, the current short term volatility in the equity markets has impacted transaction momentum through the course of the past few days,” the brokers said in a statement.
Prospective investors were told in June that the company was forecasting revenue of $355.7 million and net profit of $19 million in fiscal year 2016.
Strategic corporate acquisitions over the past couple of years in marketing communications and mailing have helped grow the former Blue Star Group – now rebranded as IVE Group – into a corporate behemoth valued at between $261 million and $290. Its brands include printer Blue Star, communications solutions provider IVEO and tech agency Kalido.
In July, IVE continued its expansion strategy by acquiring leading Sydney-based digital and sheetfed printer Oxygen.