based on range($180m to $215 m pricing range or so)SMARTGROUP IS...

based on range($180m to $215 m pricing range or so)

SMARTGROUP IS GEARING UP FOR AN INITIAL PUBLIC OFFERING OF $A200 MILLION IN JUNE ON THE AUSTRALIAN STOCK EXCHANGE (ASX)

Smartgroup is owned by Malysia's UT Group which will retain 20% to 30% of the company.

Smartgroup owns outsourced salary packaging business and other novated leasing and fleet management businesses. The company has 110,000 domestic customers using its salary packaging services, (about 20% of the market) The company has an extremely capital light business model and is a pure administrator and broking business.

Smartgroup does not self-finance any vehicles in its novated leasing or fleet management business.

Smartgroup's net profit for 2013/2014 is estimated to be at $A16.2 million before interest, tax, depreciation and amortisation of $A23 million

CIMB analysts value the company at 11.2 times to 13.3 times forecast calendar year 2014 net profit.

New Morning Sun analysts see this I P O as an opportunity for potential investors to share in a business which has the potential to grow over the next five years.

If the group price the shares conservatively the take up should happen reasonably quick.

As always we recomend that potential investors carry out further thorough "due dilligence" of their own before purchasing.

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going to have a good p/e and yield at the lower end of that range - current year earnings too.