Booragoon-based labour hire firm Total Staffing Solutions Ltd has announced plans to raise $7 million through its initial public offer, with funds raised used for the acquisition of a 51 per cent stake in recruitment company Mining People International.
The company will issue 20 million shares at 25 cents each to raise a minimum of $5 million, allowing for oversubscriptions of a further 8 million shares at the same price, to raise a further $2 million.
Existing TSS shareholders will be able to subscribe for up to 5 million shares under a priortiy offer. Applications over that will be considered in the public offer.
MPi, a specialist recruitment company operating locally and globally in the mining and resources sector, will add a furthe three offices in Perth, Kalgoorlie and Brisbane to TSS's existing seven nationwide.
TSS provides staff for a range of industries including construction, mining, engineering, nursing, hospitality, equipment maintenance, and materials handling.
The company also operates an overseas recruitment arm, Offshore Staff Solutions Pty Ltd, having already placed 400 skilled foreign workers on permanent contracts, with a client order book with more than 600 candidates to place.
TSS will continue to target logical acquisitions in the sector following the IPO, the company said in its prospectus.
The company is chaired by Probiomics chairman Bryan Gardiner, who is joined on the board by TSS managing director Dion Smith, OSS managing director Jim Stitt, Andrew Parker and Craig Munro. Mark Clements serves as company secretary.
The company also plans to appoint MPi managing director Steve Heather to its board following the acquisition.
Sydney-based Sonray Corporate Pty Ltd will act as lead manager and issue sponsor to the deal, while BDO Kendalls will serve as auditor and investigating accountant. Trident Capital Pty Ltd will serve as corporate advisor to the deal, while Price Sierakowski Lawyers will provide legal advice.
The offer, which is not underwritten, is expected to open on November 7, and will close on December 7, with the priority offer closing December 4.
