Ann: Intueri Education Group - AFR article , page-5

AFR article put some pretty hefty valuation numbers on Intueri but as always you only get half the story so its hard to really put a figure on it

Arowana International’s vocational training spinoff, Intueri Education Group, will lodge a prospectus for its initial public offering this week, which is expected to value the new company at up to $NZ310 million ($286 million).

Intueri, advised by Macquarie Capital and UBS, has been meeting institutional investors in Australia and New Zealand over the past week and is ready to pull the trigger on an equity raising worth $180 million to $200 million. Intueri is the largest operator in New Zealand’s fragmented vocational training market.

It had 9103 enrolments in 2013, including 5950 in New Zealand and 2182 in Australia. The company expects $NZ76.9 million revenue in the year to June 30 and $NZ16.8 million net profit after tax and amortisation.

In roadshows, fund managers were quick to note Intueri was running at a 21.9 per cent NPATA margin, which compares favourably to heavyweight Navitas (9.7 per cent) and Vocation (20.9 per cent).

Intueri also told potential investors its earnings margin could go higher in all aspects of the business.

The company makes $NZ2789 in earnings per enrolment, which is about twice Navitas at $NZ1550 and well up on Vocation ($NZ802).

Intueri has told fund managers its relatively high revenue per enrolment reflects the nature and importance of its courses (which range from commercial diving to hairdressing) and control over the intellectual property and teaching.

In pre-marketing research delivered to investors last week, adviser Macquarie put a $NZ260 million to $NZ310 million valuation on Intueri, which represented a 14.4 to 17.7 times price-earnings multiple.

The company was expected to come to market with a 5.7 per cent to 4.4 per cent yield, based on the above range.