By  on September 28, 2009

SYDNEY — Australia’s largest department store group, Myer, has released the details of its initial public offering, which is expected to raise as much as $2 billion.

Myer’s shareholders, including Texas Pacific Group, are offering between 479.3 million and 499.5 million shares by selling off their existing stakes in the company and issuing new shares, according to an IPO prospectus distributed Monday.

Myer’s shares will be priced between 3.90 and 4.90 Australian dollars, or about $3.39 to $4.26, when the offer kicks off next month. The IPO is expected to raise 1.94 billion to 2.34 billion Australian dollars, or $1.69 billion to $2.03 billion.

Myer said most of the proceeds will go to existing shareholders, while the remainder will be used to cover the costs of the offer and repay about 315 million Australian dollars, or $273.6 million, of debt.

Depending on the pricing of the offer, 77.6 to 92.6 percent of the company will be listed on ASX, Australia’s stock exchange, as of Nov. 2. The IPO will be the ASX’s biggest listing in three years.

The offer gives Myer an estimated enterprise value of 2.67 billion to 3.16 billion Australian dollars, or $2.32 billion to $2.74 billion. A TPG-led consortium purchased the company from the Coles Group in 2006 for 1.4 billion Australian dollars, or $1.2 billion.

The retailer said it has a network of 65 stores and plans to expand to 80 within the next five years.

Earlier this month, Myer said net profit for the year ended July 25 rose 14.8 percent to 109 million Australian dollars, or $94.2 million, higher than originally forecast.

Earnings before interest and taxes were up 10.6 percent to 236 million Australian dollars, or $204 million, slightly above previous full-year guidance.

Full-year sales declined 1.8 percent to 3.26 billion Australian dollars, or $2.82 billion.

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