Ventia had previously set out to raise $ 1.097 billion to $ 1.202 billion at $ 2.75 to $ 3.15 per share, or 12.5 to 14 times the projected NPATA. For the past few weeks she has been marketing institutional investors and retail brokers.
The majority of the fundraising ($ 374 million) would come through the issuance of new shares. The owners would only sell a $ 64 million stake, which is enough to ensure the group had a 30 percent free float and was eligible for inclusion in the index.
The IPO is to be subscribed at the weekend at the new price. Bookrunners Barrenjoey, JPMorgan and Macquarie C -ital will conduct the institutional bookbuild as scheduled on November 15th and 16th, and the stock will start trading on the ASX on November 19th.
A supplementary prospectus would be deposited with ASIC this week.
IPO fatigue
The smaller and che -er deal comes as investors’ -petite for new listings is weakened. Bids for ASX hopefuls, including bus company ComfortDelGro Australia, copper mining company Round Oak Metals, doctor booking service HealthEngine, comparison company Compare Club, and the big bopper, SG Lottery, have all been drawn in the past two weeks.
While CIMIC and -ollo would be dis -pointed to reevaluate the deal, they’ve cut the raise and price to ensure the company goes public. They are each expected to own nearly 35 percent of the publicly traded Ventia, which is held in trust and hope the new structure will mean strong trading in the secondary market.
Offshore investor C -ital Group, which was bidding 5.6 percent from Ventia at the previous price, is expected to receive a large allotment given its large early order.
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