Tasmea Limited has fast-tracked its $59 million IPO bookbuild, with the deal underwritten and allocated by Thursday evening.

Shares in the mining and infrastructure services business were offered at $1.56 apiece to raise $59 million, which would give the company a $339.7 million market capitalisation or a $363.8 million enterprise valuation upon listing around April 29.

The original plan was for the cornerstoning process to shut on Wednesday, with a retail bookbuild to run from March 27 to April 10. However, the three brokers had secured enough firm commitments by Thursday afternoon to skip the latter leg and bed down the deal. The register is understood to be two-thirds institutional investors.

Would-be backers were told to think about $110 million EBIT by 2027. The offer price represented a 5.4-times multiple to the pro forma EBITDA forecast for the 2024 financial year, or 6.7-times the EBIT expectations. It is 10.1-times the pro forma net-profit for the same period.

Tasmea, led by its founder Stephen Young, employs 1400 people. Its largest divisions are electrical and mechanical at 36 per cent and 32 per cent the revenue, while water and fluid works spoke for 20 per cent and civil works rounded off the total.

The forecast is for $434 million revenue and $54 million EBIT for the year ending June 30. The latter should grow to $110 million by the 2027 financial year, according to a term sheet sent to fund managers. About $26 million of IPO bookbuild will go towards paying out selling shareholders, with $12 million marked for reducing leverage.

The leftover will fund acquisitions ($10 million) and working capital ($5 million). The business would have $24.1 million pro forma net debt at completion. Tasmea has sold 17 per cent of the company under the IPO, and its management has agreed to a 17-month escrow period.

The joint lead manager lineup includes Morgans, Shaw and Partners, and Unified Capital Partners. Morgans and Unified have underwritten the deal.

Article source: AFR, 22 March 2024