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.
