The speculation’s over: Australian accounting company MYOB today lodged its IPO prospectus.
MYOB is valuing the company at an enterprise value of between $AU2.34 to $AU2.69 billion, or 14.5 to 16.8 times forecast EBITDA for the coming financial year.
The company is expecting to raise between $AU831.7 to $AU833.8 million based on an indicative price range of $3.00 – $4.00 a share.
Here are the financials.
The funds will be used to pay back debt, allow management shareholders to realise their investments and improve capital flexibility.
At the lower end of the valuation, company CEO Tim Reed’s stake will be worth $20 million.
Here are the stats.
MYOB is currently majority-owned by private equity outfit Bain Capital, who will not sell any of its shares in the offer and intends to retain a majority stake at completion.
Between 1999 and 2008 the company was listed on ASX and in 2011 was acquired by Bain Capital.
MYOB chairman Justin Milne said the growth of cloud-based accounting software is providing MYOB with an opportunity for expansion.
“The return of MYOB to the ASX after six years of private ownership represents a great opportunity for both shareholders and our clients,” Milne said. “MYOB is a market leader within each segment it operates, and the company continues to innovate in its key markets of Australia and New Zealand.”
Reed said as of the end of 2014 the company had more than 116,000 paid subscribers using its cloud solutions across Australia and New Zealand.
“The company has taken enormous strides in recent years under the ownership of Bain Capital. We have made significant investment into R&D in the business to innovate and further drive our leadership through our range of cloud accounting solutions,” he said.
Competitor Xero today released updated Australian customer numbers which stated it had 200,000 paid users. Xero was trading down 1.14% today to $23.33 a share.
A self-proclaimed “market leader” MYOB said it was well-placed to benefit from the shift to the cloud, especialy as it aims to migrate desktop users to the new platform.
Citigroup, Goldman Sachs, Merrill Lynch and UBS are joint-lead managers on the offer.
We’re going through the documents now and will have updates, so stay tuned.