Molycop kicks off Aussie IPO roadshow; FY23 $US185m earnings forecast

afr.com:

Eat your heart out Virgin – it’s Molycop’s turn to strut its stuff.

Street Talk understands the steel grinding media business will start its local non-deal roadshow on Monday, giving institutional investors in Sydney and Melbourne a chance to get to know its operations and management team before a potential $2 billion run at the ASX boards.

According to an investor presentation in front of fund managers and obtained by Street Talk, MolyCop is expected to deliver $US185 million ($275 million) EBITDA in the 2023 financial year. It is understood to be chasing an offer of about $1 billion, as first reported by Street Talk. However given the investor meetings are preliminary in nature, pricing or valuation will not be discussed, sources said.

Molycop is one of the largest suppliers of grinding media globally. It was the former crown jewel of the Arrium steelmaking empire and fetched $1.6 billion when American Industrial Partners acquired it in 2016.

Molycop operates furnaces in Newcastle and is one of the world’s largest producers of grinding media. Wolter Peeters

Earlier this year, the US private equity group called in Goldman Sachs deal makers to take the Newcastle steel manufacturer public. UBS, Macquarie Capital and Morgan Stanley were mandated in May, joining Goldman as joint lead managers. Gilbert + Tobin will handle the legal work while Molycop has boutique advisory Reunion Capital Partners overseeing the process.

The non -deal roadshow has seen management meet with investors in the United Kingdom, United States and Asia in recent weeks. A listing is pencilled in for before Christmas, sources said.

Molycop’s latest financial accounts, lodged with the corporate regulator in November, show the company recorded revenues