QMS Media is seeking to raise $90 million through an initial public offering of 138.5 million shares priced at $0.65 each that is fully underwritten by Baillieu Holst.
Proceeds will be used to fund acquisitions including QMS APAC Limited – one of Australia’s leading outdoor advertising assets - and the outdoor advertising assets of Paramount Outdoor, Octopus Media and Drive By Media amongst others.
On a pro forma basis the company generated $44.1 million revenue in FY2014. Revenue for FY2015 is forecast to reach $59.4 million.
QMS’ growth strategy is underpinned by the organic development of its Australasian landmark digital and static outdoor assets.
This will be achieved through the development of new digital assets in high profile metropolitan locations and the selective conversion of long-tenure static billboards to digital.
Digital billboards deliver a number of benefits to advertisers, including scale, impact, creative flexibility and immediacy, as well as superior audience engagement.
These benefits translate to high site utilisation and attractive revenue streams.
The development plan to expand QMS’ landmark digital portfolio is expected to result in digital signage contributing an increasing proportion of total revenues in the future.
It has a strategic presence in New Zealand and Indonesia through its retail, transit and airport sites, which positions the company for future growth across the Asia Pacific region over the medium-term.
Highlighting the potential, Australian advertising spend has grown from $9.7 billion in CY2003 to $13.4 billion in CY2013, at a compound annual growth rate (CAGR) of 3.3%.
Notably, the outdoor advertising industry grew at a CAGR of 6.2% in the same period.
In New Zealand, the advertising industry grew from NZ$1.9 billion in CY2003 to NZ$2.3 billion in CY2013, a CAGR of 2.1% with outdoor advertising growing at a 4.9% CAGR.
The Indonesian outdoor advertising industry generated net revenues of US$197 million in CY2013 and is projected to reach US$246 million in CY2014.
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