Earnings are similar, with EBITDA expected to increase from negative $5.7 million in 2020 to $45.9 million by the end of 2024. Nido expects its after-tax earnings to be in the green by the end of next year, which should bode well for future dividends.
Escrow account for 24 months
The IPO would see Edwards own a 50.5 percent stake in Nido, while the IPO investors would own 45.2 percent. Under the Escrow Agreement, Edwards would be barred from selling shares until Nido reports its full-year results for calendar year 2024.
This is expected to happen in February 2025 and would ensure Edwards’ ability to meet or exceed the guidance detailed in the IPO pitch decks — and live up to its Think Childcare reputation.
Nido operates 52 centers with Sydney-based Alceon Private Equity acting as financing partner. The goal is to have a pipeline of 100 centers over a period of four to five years, according to the term sheet.
To this end, $73 million of the $99.2 million in IPO proceeds is earmarked for acquisitions. The proceeds would also pay the first tranche of a loan ($6 million), rent deposits ($5.1 million), working capital ($5 million), stamp duty related to acquisitions ($2 million) and $8 million in offering costs.
Canaccord Genuity, MA Financial and Wilsons Corporate are in charge of the capital increase.
A roadshow is expected to begin on Friday, with bids scheduled for September 11th. It is a front-end bookbuild and the brokers would file the IPO prospectus two days later. A broader bookbuilding from September 21st to October 4th would pick up the remaining shares.
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