Accounting software company MYOB Group (ASX:MYO) made an ASX debut on Monday, returning to the Australian shares market after a 6 year absence. In 2009 the company was taken private by Australian private equity firm Archer Capital, which then sold it to US-based Bain Capital for around $1.2bn in 2011. The IPO for the company raised $833m in a two-day raising, making it Australia’s largest public offering so far this year. MYOB is the biggest Australian accounting software company for small and medium enterprises. Investors have watched the company over the past several months as the company built up to the IPO announcement. The company has a forecasted revenue of $323m, up from $299.3 from the previous corresponding period. Earnings before interest, tax, deprecation and amortisation are projected to be $150.6m, compared to $128.5m in the previous corresponding period.
The software company debuted with a $3.65 share price. It reached as high at $3.91 per share in the opening hours of trading and is now trading around $3.87 per share around 2:55pm on Monday. Local fund managers have questioned the share price, which is now up around 6 per cent. MYO is trading at a price 23.5 times its forecasted 2015-16 net profit after tax and amortisation. The company said it hopes to switch its userbase to the more lucrative cloud-based business it offers. Some of the company’s largest shareholders include US giant JP Morgan, BNP Paribas, Citicorp and HSBC. Bain Capital remains the largest shareholder with a 57.7 per cent stake in the company. Chief Executive Officer Tim Reed holds 1.2 per cent of the company.
Author: Matthew Dibb
May 04, 2015
Matthew has an extensive track record in equity markets and derivative advisory. Spanning a career in several investment banks and prviate wealth groups including Macquarie Bank, his specialist knowledge relates to capital market advisory and equity market analytics. Matthew has a diploma in Financial Advisory, Applied Finance and is ADA 1 & 2 accredited.