Speculation is mounting that accounting software company MYOB is gearing up to IPO before the end of the financial year.
According to a report in the AFR, pre-market research was released to fund managers today which asks them to value MYOB in line with US giant Intuit. Intuit is trading close to record highs at about $99.93 a share and has a market cap of over $27 billion.
It is expected MYOB’s mid-point valuation will be around $2.5 billion. Citi analyst Justin Diddams estimates MYOB is worth between $2.4 billion and $2.8 billion.
If the MYOB expectations are correct, it would be the biggest Australian float to date this year.
Diddams estimates MYOB’s revenue will grow 8% to $323 million and EBITDA to grow 17% to $150.6 million in the 2015 financial year. Much of the growth is expected to come from the company’s push into cloud-based accounting software options.
The software company’s brokers – Bank of America Merrill Lynch, Citi, Goldman Sachs and UBS – will host meetings over the next two weeks before MYOB lodges a prospectus.
There’s more here.