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Metro Performance Glass is forecasting a substantial lift in revenue and profit over the next 15 months, according to a prospectus supporting a $244.2 million initial public offer.
The New Zealand glass maker - formerly Metro GlassTech - launched its IPO this afternoon, after an institutional and broker firm book-build priced the offer at $1.70 per share, as reported by NBR ONLINE on Friday.
The shares were priced at the lower end of the indicative price range of $1.65 to $1.90, as predicted by market sources.
However, according to Metroglass the offer was more than two times oversubscribed.
A total of 143.7 million shares will be offered, raising $244.2 million, most of which will go to its current private equity owners. The offer values the company at $314.6 million.
Metroglass' prospectus, released today, shows the company is forecasting pro-forma net profit of $14.3 million for the 12 months ended March 31, 2015, up from $12 million in 2014, with annual revenue climbing from $155.4 million to $171.9 million.
From the 2012 to 2014 financial year, Metroglass’ pro forma revenue and pro forma EBITDA increased at a compound annual growth rate of 11% and 45% respectively.
The company is predicting to make a net profit of $21.2 million in the 12 months ending September 2015..
Metroglass produces more than two million square metres of glass per year and pitches itself as the largest value-added glass processor in NZ with more than half of the market share.
The company says dwelling consents increased by 18% in the nine months to April – there are currently 22,695 consented new dwellings – which support its future growth. Glass demand tends to lag up to a year behind consents.
The Christchurch rebuild, Auckland housing initiatives and a high level of net migration all support glass demand.
There are 143.7 million shares on offer to raise $244.2 million, and New Zealand and international institutional investors have been allocated shares.
New Zealand resident clients of NZX firms, Australian resident clients of Australian brokers and certain Metroglass employees will be offered shares, although there is no public pool.
Selling shareholders will keep hold of 34.3 million (18.5% of total) shares after the offer is completed, and senior management will hold on to 7.1 million (3.8% of total shares and 75% of their current investment).
Metroglass chairman Sir John Goulter and CEO Nigel Rigby – former US head of building material group James Hardie’s US$900m business – are currently fronting a media conference.