LogiCamms Ltd has made a stellar debut on the Australian Securities Exchange today, with shares trading as high as $2 or double their issue price upon opening.
Shares in the company closed at $1.47, valuing it at more than $42 million.
The debut follows a successful $10 million initial public offering, in which the West-Perth based electrical engineering company closed its offer of 10 million shares at $1 each, oversubscribed.
Upon listing, the company had 28.6 million shares on issue and a market capitalisation at the listing price of approximately $28.6 million.
LogiCamms comprises the merger of two well-established businesses, Logitech and Camms.
The company designs, builds, installs, commissions and services electrical and control systems for major projects primarily for the resources, energy and utilities industries.
LogiCamms is forecasting a net profit after tax of $3.35 million on revenue of $34.46 million for the year ending 30 June 2008.
This equates to earnings per share of 11.7 cents and a price earnings multiple at the $1.00 issue price of 8.5 times.
LogiCamms will use the proceeds of the offer to part fund the acquisition of Logitech and Camms, retire debt, to pay the costs of the offer and for working capital purposes.
Managing Director Adam Keats said LogiCamms was buoyed by the strong investor support for the IPO, especially from the range of institutional investors and sophisticated retail investors who have become shareholders.
"The ASX listing will provide LogiCamms with the broader business benefits of increased visibility, transparency and credibility for our shareholders, and will allow the company to fund future growth opportunities," said Mr Keats.
"LogiCamms plans to expand the services the company provides to existing and new clients across Australia, whilst continuing to focus on core markets to drive growth, namely resources and energy & utilities."
"In the future the company intends to expand both its range of services and geographic presence," he said.
Bell Potter Securities acted as lead manager and underwriter to the offer.
