After an international IPO Road Show and mainstream and financial media coverage, the Costa IPO share price has been announced, and trading will begin on Friday at $2.25 per share.
The Australian Financial Review, and Reuters have both said that the price is ‘off the low end of the range’, and advisers Goldman Sachs and UBS were said to be accepting offers between $2.20 and $2.70 a share, or 14.8 to 17.6 times forecast fiscal 2016 earnings. The final price is being reported as $2.25 for a total valuation of AUD$553 million, for a 76 percent stake. The deal will still be the second biggest Sydney market debut this year, according to Reuters.
Costa was looking to raise between $541 and $637.4 million, a number at the low end of valuations between $600 million and $1 billion, reported during the road show. The Australian reported on Tuesday that at least 10 domestic institutions had indicated interest in buying into the low end of the IPO, but the price would be driven higher by an influx of interest from foreign investors.
Food supply companies have proved to be a bright spot this year, after
the Australia-China FTA was signed. The food industry is set to benefit from increased demand for quality produce by Chinese consumers, which is being called the ‘dining boom’.
The Greek sovereign debt crisis, and share market correction in China have hit investor confidence hard in Australia, with $2 billion wiped off listings according to the Reuters report.
To read more visit www.reuters.com, www.afr.com.au, www.abc.net.au
