Primero Group managing director Cameron Henry will emerge with a $9.5 million stake in the engineering company under a proposed stock market listing.
Under the prospectus for the $25 million initial public offering, Mr Henry’s shareholding in the resources-focused contractor will be cut from about 29 per cent to 16.5 per cent.
The owners of the Mark Connelly-chaired business are selling down $5 million in shares as part of the float, which gives Primero a market capitalisation of $58 million.
The stakes of executive directors Dean Ercegovic and Brett Grosvenor at the 40¢-a-share float price will be worth $7.5 million and $3.6 million, respectively.
The directors’ shares are subject to escrow arrangements.
The prospectus said Mr Henry had a base salary of $380,000, excluding superannuation. Mr Ercegovic and Mr Grosvenor are each paid $320,000.
IPO subscribers will hold about 44 per cent of the company when it starts trading on the Australian Securities Exchange on July 6.
Primero is forecasting a net profit of $4.7 million this financial year from revenue of $80 million.
It has worked on Tawana Resources’ Bald Hill lithium project in the Goldfields. Other clients have included Rio Tinto, Fortescue Metals Group and Galaxy Resources.
“The quality of Primero’s management, client relationships and expertise within its core business divisions are all factors contributing to Primero’s strong financial performance,” Mr Connelly sai
GXY Price at posting:
$3.42 Sentiment: Buy Disclosure: Held
