Compass Hotel Group Debuts 6% Higher

By Glenn Dyer | More Articles by Glenn Dyer

Compass Hotel Group (CXH) debuted on the ASX today at a 6% premium to its offer price following a $123 million float.

The West-Australian pub owner offered 123 million shares at $1.00 each in the initial public offer (IPO) and has forecast net profit for the 2007/08 financial year of $970,000 and $10.4 million for the 2009 financial year.

Its shares began trading at $1.06 on Thursday before easing back to be unchanged at $1.00 at 11:30PM AEST.

Compass Hotel Group said its IPO has attracted a broad range of retail and institutional investors from across Australia.

"Investors will receive dividends from the company – to manage and operate the hotels and tavern businesses – as well as distributions from the trust, which will lease the properties to the company," the company said in a statement

The IPO will help fund the pub owner's $190 million acquisition of 12 hotel and taverns in Western Australia.

It has forecast total revenue of $100.3 million and earnings before interest and tax of $18.4 million for the 2009 financial year.

RELATED COMPANIESTagged

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

View more articles by Glenn Dyer →