Mader Group has positive ASX debut

Shares in WA mining maintenance contractor Mader Group have traded at a premium to its initial public offering price, crystalising the value of founder Luke Mader's majority stake in the business. 

Mader issued shares at $1 via a $50 million float last month, and on its first day of trade its shares were up 14 per cent to close at $1.14.

It is the largest WA-based listing since Australian Finance Group and Wellard in 2015.

The company was founded by former WesTrac diesel mechanic Luke Mader in the Kimberley in 2005, and now employs more than 1,100 people.

Mr Mader and investor Craig Burton sold-down a combined 25 per cent of the company to new investors for the float, in a deal that valued Mader at $200 million.

The company is now currently worth $228 million. 

Mr Mader owned 75 per cent of the group prior to the sell off, and sold $38 million worth of shares to retain a 58 per cent stake.

With 112 million shares left, Mr Mader's stake in the company equates to $127.6 million.

This places him within the top 10 of our directors shareholdings list.

Additionally, he has recieved around $14 million via dividends the company has paid out. 

Mader Group’s revenue is forecast to hit $226 million in the year to June 2019 and it is tipping revenue of $279 million in the current financial year.

Over the same period, its net profit is forecast to increase from $14.7 million to $18.8 million.

The company is currently focused on international growth, with Mr Mader and his family moving to Colorado just over a year ago h in a bid to break into the large US market.