MANTRA REVIVES $449M FLOAT
Written on the 11 June 2014 by Nick Nichols
MANTRA Group, buoyed by surging global share markets, has taken a second stab at listing on the Australian Securities Exchange through a $449 million float.
The Surfers Paradise-based accommodation provider has launched its prospectus to raise $239.1 million through the issue of 132.8 million shares at $1.80 each.
This represents 53 per cent of the company’s issued capital.
The move will amount to a partial sell-down by majority shareholders CVC Asia Pacific and UBS who will retain a 43.3 per cent interest in the company after listing.
Management, including CEO Bob East, will hold a 3.5 per cent stake and all shares owned by the major shareholders will be held in escrow until June 30, 2015.
The quickfire IPO will see Mantra shares trading on the ASX as early as June 20.
The retail offer opened yesterday and closes on June 17.
According to the prospectus, Mantra Group will be trading on a multiple of 12.7 times 2015 net profit, based on the issue price.
Mantra carried net debt of $89.1 million at the end of December last year and the proceeds of the float will be applied to a partial paydown of that debt.
The company expects to pay its first dividend in March 2015 with a targeted dividend ratio of between 70 and 80 per cent of after-tax net profit.
The prospectus reveals Mantra Group’s revenue has grown from $396.2 million in the 2011 financial year to $424.4 million in 2013 in a rising tourism market.
It is forecasting revenue of $450.1 million this financial year and a jump to $490.9 million in 2015.
Net Profit after Tax in the 2013 financial year landed at $24.6 million, while NPAT this financial year is expected to be $27.4 million, climbing to $32.6 million in 2015.
East was not immediately available for comment, but the Mantra boss has previously revealed to Gold Coast Business News his ambitions to grow the business in the Asia-Pacific region.
Mantra has expanded into Fiji and Indonesia, which East says will be the focus of offshore growth initially.
Mantra Group has 113 properties in its portfolio and manages more than 11,600 rooms through its three brands – Peppers, Mantra and BreakFree.
The company is the Gold Coast’s largest accommodation provider and is ranked number two across Australia.
The public listing marks a return of sorts for the business to the stock exchange.
While it was once part of the failed MFS Group until 2008, Mantra also retains assets that were once held by former listed Gold Coast companies S8 Group, headed by Chris Scott, and BreakFree Resorts, headed by Tony Smith.
Mantra Group earlier this year took a tilt at its first public listing since CVC Asia Pacific bought the company from liquidators to MFS, but the plan was abandoned after a lukewarm reception from institutional investors.At the time, East said a share market float was likely to be revisited by the company’s owners later in the year.
Author: Nick Nichols