Bradken Limited today announced it has lodged a prospectus for a revised initial public offering (IPO) with the Australian Securities and Investments Commission (ASIC). The offer price is fixed at $2.40 per share and the offer has been fully underwritten by Credit Suisse First Boston and Goldman Sachs JBWere.
It is anticipated that Bradken will list on the Australian Stock Exchange on Wednesday 18 August, 2004.
Bradken is one of the leading manufacturers and suppliers of consumable parts, capital products and maintenance services to the Australian resources and rail freight industries. Bradken's strength is its ability to create and effectively market differentiated consumable products for its customers.
Key Statistics:
Offer price $2.40 per share
Shares being offered under this prospectus102.08 million
Market capitalisation$245 million
ASX CodeBKN
Launching the offer, Bradken Managing Director Brian Hodges said "We are extremely pleased with the interest we have had, both domestically and from offshore, to bring this offer back to the market. This offer is fixed price and fully underwritten, providing much more certainty to future shareholders.
"The prospectus lodged today includes audited financial information which shows that for the year ended 30 June, 2004, Bradken's performance continued to be strong.
"In our view, Bradken's solid growth outlook, sound track record of profitability, strong cash flows, competitive position and proven stable management team represent an attractive investment proposition.
"We remain well positioned to capitalise on the strong demand for our products flowing from the growing demand from mining commodities, in particular from China, and continue to see opportunities flowing from the growing preference of government and industry for transport of freight by rail.
"As previously articulated, our earnings are insulated from the commodity price cycle, due to demand for our products being driven by tonnes mined, not commodity prices."
The prospectus lodged today includes forecast 2005 EBITDA of $56.5 million. The dividend yield on an annualised basis is forecast to be 6.8%.
Under the revised offer, Bradken's current majority shareholders:
- Private equity funds advised by Castle Harlan Australia Mezzanine Partners ("CHAMP") may retain up to 14.9% of the shares in the company; and
- ESCO, a US company with a long standing licensing agreement with Bradken, up to 7.5%.
Bradken's strategy is to maintain focus on the development and manufacture of differentiated consumable products and to increase refurbishment and maintenance services which, in turn, strengthen the company's ability to promote its full product range.
Bradken will also be open to pursuing selective acquisitions which have strong synergies to existing operations and expand the Company's product and service offering.
Commenting on the offer, Chairman Nick Greiner said: "the board believes that Bradken's solid growth outlook, sound track record of profitability, strong cash flows, competitive position, coupled with a proven stable management team represent an attractive investment proposition.
The current Management Shareholders of Bradken have committed to effectively re-invest approximately $16.0 million dollars into the Offer.
Bradken was acquired in December 2001 by a private consortium, consisting of private equity funds advised by CHAMP, ESCO and various management shareholders.
The offer comprises of an institutional and broker firm retail offer. No general public offer is being made.
For further information, please contact:
Gavin Anderson & Company
Kate Kerrison
Tel: +61 2 9552 4499
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.