Wesfarmers is set to issue an IPO for its $1.12 billion insurance broking business, Oamps, in what would be one of the largest floats on the ASX this year.
As one of the largest Australian-owned insurance brokers it posted earnings before interest and tax of $41m in the six months to December 2013.
Analysts say the Wesfarmers’ business has an earnings to enterprise value ratio of 16.6 times and a price-earnings ratio of 18.4 times for the 2015 financial year.
If float goes ahead, the business it would join a list of lucrative IPOs coming to the market this year including Healthscope, Spotless and possibly Medibank Private.
Oamps was purchased by Wesfarmers for $700 million in 2006. An announcement on the decision is expected to be made on Monday.
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