Big River Industries IPO, page-3

Well there's the update - looks like we stand somewhat corrected @Nani (MG) about how private equity are playing this out. Looks like acquisitions are only recently coming to fruition, so I still do wonder what has been going on the last year under PE ownership.

Anacacia Capital's Big River steels for ASX listing
Here's one that slipped below the radar.

Private equity backed timber and building products manufacturer and distributor Big River is headed to the ASX-boards in an underwritten initial public offering via Taylor Collison.

Street Talk understands Taylor Collison introduced Big River to a handful of fund managers over the past fortnight and found enough support to underwrite a $17 million IPO which values the company at about $80 million.

Big River makes and distributes timber and steel formwork products, timber flooring, structural plywood and related products, and has two manufacturing facilities in regional NSW.

Funds raised from the IPO are expected to strengthen the balance sheet for future acquisitions, with none of Big River's existing shareholders selling out as part of the listing. That includes Sydney-based private equity firm Anacacia Capital, which bought a controlling stake about this time last year.

It's understood Big River management made an ambitious growth pitch to investors as part of the recent meetings. The company acquired Adelaide Timber and Building Supplies in recent weeks and expects to secure another Brisbane-based building products supplier before the end of this month.

The two acquisitions are said to add another $30 million annual revenue to the group, while EBITDA is now north of $10 million. Taylor Collison led the IPO while Deloitte was investigating accountant.

For Anacacia, it is the firm's second IPO in two years. Its last one was Appen which listed in 2015 and is now trading at more than five-times its listing price.

Big River is expected to commence trading in May.


Read more: http://www.copyright link/street-ta...for-asx-listing-20170326-gv6l8f#ixzz4cSuK3N76
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