APM has finalised the terms of its stockmarket float, with the Perth company planning to raise $972 million, confirming it as WA’s largest-ever IPO.
APM has finalised the terms of its stockmarket float, with the Perth company planning to raise $972 million, confirming it as WA’s largest-ever IPO.
Its IPO has been priced at $3.55 per share, following presentations this week to cornerstone investors.
The pricing of the IPO represents a multiple of 21 times the company’s profit after tax but before amortisation – valuing the company at about $3.25 billion.
The cornerstone investors will take up 80 per cent of the new stock and the balance will be marketed to other investors ahead of the formal launch of APM’s prospectus.
The strong response reflects the buoyant demand for new floats, with three other Australian companies – fund manager GQG Partners, software company SiteMinder and 'fintech' Judo Bank – also planning to raise about $1 billion each before the end of the year.
Support for APM has also been helped by its secure revenue base, with the company providing a range of employment, disability and health services that have been outsourced by governments around the world.
APM’s business focus also appeals to institutions looking to meet environmental, social and governance (ESG) investment criteria.
In addition, APM has a track record of strong growth in revenue and profits.
Its revenue is set to reach $1.33 billion in the year to June 2022, up from $1.0 billion in FY21.
Similarly, its net profit after tax is expected to increase from $79 million to $108 million this year.
The stock is being sold on dividend yield of 2.2 per cent.
In a brief statement, the company said it was thrilled with the quality of the cornerstone participants and looked forward to a long association with these investors.
The IPO will allow US-based private equity investor Madison Dearborn Partners to cut its stake from 55 per cent stake to 30 per cent.
Perth-based company founder Megan Wynne and her husband Bruce Bellinge will cash-in a small portion of their holding, going from 40 per cent to 35 per cent.
The balance of the capital raising will be used to reduce debt and support future growth of the business.
Led by chief executive Michael Anghie, APM has built a global business with 7,500 staff across 10 countries.
The size of APM’s initial public offering puts it ahead of other big WA-based IPOs that occurred before the GFC, including Emeco Holdings ($941 million), Alinta Infrastructure Holdings ($925 million) and Multiplex ($900 million).
(Multiplex raised a further $300 million in a two-stage listing process, for total proceeds of $1.2 million.)
The lead manager for the float is Goldman Sachs, with support from Credit Suisse, UBS and Bank of America Merrill Lynch.
Gilbert + Tobin is legal adviser.
