Timing is everything, as usual and nowhere was this better illustrated than the listing of new float, Royal Wolf Holdings (RWF) on the ASX yesterday.
The company is a container refurbisher and hirer and is riding the resources boom.
Its shares listed yesterday solidly and closed the day at $2.06, a 23c premium (and more than 10%)to the $1.83 issue price, which is something you can’t say about Myer, which has yet to achieve its $4.10 issue level, let alone top it.
Helping the buoyant opening was the strong day on the market with a gain of nearly 1% for the day.
It made the IPO easier and that was seen in the shares opening at $1.98, well above the offer price.
At $96 million, it is the biggest float so far this year and the company, was owned by US group General Finance Corporation, which will hold a 50% stake and can’t sell until the end of the 2012 financial year.
Around $65 million will be left after the costs of the float, licence fees and other charges are deducted.
Royal Wolf’s float was only the seventh in Australia this year so far.
Groups like Nine Entertainment (at more than $4 billion) have been unable to come to market because of the difficult conditions.
Royal Wolf describes itself as "a leading provider of portable container solutions to the resources, construction, logistics, retail and manufacturing industries in Australia and New Zealand with a lease fleet of approximately 29,000 and average annual sales of approximately 17,000 containers as at 31 December 2010.
"Royal Wolf leases and sells container products through its 23 Customer Service Centres located in every state in Australia and in the North Island and South Island of New Zealand, as well as through a National Accounts Management Team that is focused on large customers and contracts.
"Royal Wolf is the only provider of portable container solutions with Customer Service Centres servicing all major business centres in Australia and New Zealand and, as such, is the only portable container solutions company with a national infrastructure and workforce."
The prospectus forecast pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) of $30.0 million in FY2011 and forecast statutory EBITDA of $35.2 million in FY2012.
"Royal Wolf’s ultimate major shareholder, General Finance Corporation (GFN), will continue to have a significant shareholding. GFN has historically provided Royal Wolf with strategic, operational and marketing guidance and intends to continue this valuable relationship going forward," Royal Wolf said.
Metal basher Bradken is in the process of a $162 million capital raising that should be completed overnight or this morning.
The mining and rail equipment supplier said the placement to institutions was to fund its capital investment program and retain flexibility to pursue acquisitions and growth opportunities "as they arise".
Bradken offered the shares at between $8.05 and $8.65, with the lower end representing a discount of 6.9% to its last traded price of $8.65 on Monday.
A subsequent offer to retail investors will be at the same price with documentation being issued next Monday, at this stage.
The shares will be eligible for the final dividend.
Before the retail issue, around 13% of the company’s issued capital will be issued in the placement.
