Printing and marketing company IVE – formerly Blue Star - has successfully launched on the Australian Stock Exchange just six months after being forced to cancel a failed attempt in June.
IVE Group Limited – ASX code: IGL - began trading on the boards at 12pm AEST, Wednesday, 16 December. More than 1.5 million shares were traded within minutes, with the opening offer at $1.95.
The move is the first public offering for the printing industry for many years and represents a new appreciation of the value of integrated print-based communication companies. In recent times Blue Star has transformed itself from a purely printing company into a sophisticated marketing communications enterprise by buying a number of subsidiaries. The task now is to justify the market value of $173.5 million with sustainable growth in a competitive environment.
“Bring it on,” Geoff Selig, executive chairman, IVE, told Print21. “This is a validation of the journey that the business has been on and that goes all the way back to 1921 with the launch of a local newspaper by my grandfather. It’s a good feeling and it's extremely rewarding to be able to present a business of this calibre and diversity to the market. It’s a testament to the underlying strength of our business and to all of the hard work carried out by our staff over many years.”
The success of the most anticipated float in the print sector in two decades was guaranteed late last month when brokers underwrote the company’s $75.6 million initial public offering (IPO). Existing shareholders Wolseley PE and the Selig family will retain majority ownership. Geoff Selig will continue as executive chairman of the Group, with Gavin Bell and Andrew Harrison joining the board as independent non-executive directors.
Selig said he was delighted with the strong level of support from cornerstone investors. “Our strong financial position and access to capital markets will provide the platform for the company’s continued strategic expansion,” he said. “This is ultimately a very good news story for our sector. Print does attract criticism at times but we believe the industry is in a stronger position now than it’s been in ten years and this gives us a wonderful opportunity to grow and evolve.”
"With FY16 forecast revenue of $380m, EBITDA of $42.5m and a market capitalisation of $177.6 million, IVE has continued its growth and evolution over the last three years through an aggressive acquisition program," said Selig shortly before the listing. “We’re in a good position after three very fruitful years where we invested $90 million and acquired nine businesses. Now, with the increased capitalisation, we see much larger opportunities in the market and we’ll be looking to double our business in the years ahead. The future looks bright.”
Existing investors will retain a 57.5 per cent stake in the listed company. Wolseley Private Equity will be the company’s largest shareholder with a 38 per cent stake, while the Selig family will own 15 per cent. Total number of shares on issue will be 88.9 million and the existing owners will hold 51.1 million.
IVE is one of Australia’s most diversified print and marketing communications businesses, holding leading positions across many product and services sectors. Acquisitions over the past three years in marketing communications and mailing have helped grow the former Blue Star Group into a corporate behemoth with brands including printer Blue Star, communications solutions provider IVEO and tech agency Kalido.
Earlier this week, IVEO announced a major deal with fast food giant McDonalds to manage production, warehousing, kitting and distribution of display and operational materials for McDonald’s 940-strong restaurant network.