Tasmea pre-IPO materials hit inboxes; three brokers appointed
It’s all systems go at IPO hopeful Tasmea.
As The Australian Financial Review reported last week, the engineering company that provides services to the likes of BHP and Rio Tinto is considering a run at the ASX that could value it at more than $400 million.
Now, Street Talk has got its hands on the pre-IPO pathfinder prospectus, put together by Bell Potter, which has landed in fund manager’s desktops ahead of investor meetings, site visits and a potential bid to float as early as mid-November.
The marketing materials talked up Tasmea’s high level of recurring revenue, over 90 per cent, its leverage to a maturing asset base, and strong forecast growth, with the company forecasting pro-forma EBIT growth of 35 per cent-plus in FY24. It also highlighted Tasmea’s operating metrics and acquisition strategy in a “fragmented market”.
“Tasmea has a programmatic acquisition strategy focused on acquiring regionally leading or second leading trade services companies of a particular service niche and scaling them through the group’s national customer base,” industrials analyst Sam Brandwood said.
The Perth-based company has been on the acquisition trail and now has 17 subsidiaries under its belt and 1300 employees.
Bell Potter’s Brandwood issued an indicative enterprise value based on trading multiples of similar listed businesses in the range of $409.1 million to $434.4 million, representing 8.1-times to 9.8-times financial year 2024 estimated EBIT and 6.5-times to 7.7-times FY24 estimated EBITDA.
The business is forecast to pull in $320 million revenue and $39.5 million in earnings before interest, tax, depreciation and amortisation in the year to June 30, according to accounts recently filed. It expects pro-forma revenue of $422.7
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