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MYOB Looking For ASX Listing in Year’s Largest IPO to Date

MYOB Looking For ASX Listing in Year’s Largest IPO to Date
Apr 01, 2015 By Simon Herrmann

The financial services company MYOB is seeking to list on the ASX. The company is projecting its initial public offering to cost $51.8m. This includes $41.4m in payments to advisers and other transaction costs. MYOB will pay lead managers Goldman Sachs, Merrill Lynch Equities, Citigroup and UBS 1.9 per cent of the noteholder exchange program and priority offers. In return, the lead managers will pay retail brokers Bell Potter Securities, JBWere and UBS Wealth Management 1.5 per cent of shares allocated to their clients. Other fees include a $1.8m payment to PricewaterhouseCoopers for preparing an independent accountant’s report. The company is hoping to float its business in a move that will value it at around $2.7bn, including debt.

MYOB hasn’t been publically owned since 2009 after Archer Capital acquired the company for $382m. In 2011, Archer then sold the company to Bain Capital, a company that was cofounded by former US President hopeful Mitt Romney. During this time the company had a book value of $227.7m at the end of 2011. The move towards an ASX listing is part of a financial overhaul that is seeking to pay down MYOB’s $1.1bn debt and help fund a new $437m banking facility. There is almost no part of the business that has not been overhauled,’’ said the company’s CEO Tim Reed. Bain Capital will control 57 per cent of the company, or around $1.37bn in assets at the $3.50 share price. Although Bain will not be selling shares right away, it will receive $134m for redeemable preference shares to be bought back by MYOB from the proceeds of the deal. Revenue for the company was up last year at $299.3m and is forecasted to teach $323m this year.


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Simon Herrmann Author: Simon Herrmann Apr 01, 2015

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.

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