ASX aspirant Vitaco will be priced at between $2.00 and A$2.41 per share, according to a termsheet sent to fund managers on Monday morning.
This represents a 2016 financial year price to earnings multiple of 18.5 times to 20.5 times, an FY16 EV/EBITDA of 11.8 times to 12.9 times and an FY16 dividend yield of 2.7 per cent to 3 per cent.
The health supplements and sports nutrition company's offer size is $227 million to $251 million.
The implied market capitalisation at the offer price is $284.6 million to $315.3 million while the enterprise value is $324.4 million to $355.2 million.
Vitaco's institutional bookbuild opens on August 20 and closes a date later, while the retail offer kicks off on September 1. Vitaco shares are slated to start trading on the ASX on September 16. As previously revealed by Street Talk, Vitaco was valued at 18 to 21 times forecast 2016 financial year earnings by sponsor broker Citigroup, equating to a $317 million and $353 million enterprise value.
Citi's top-of-the-range was bettered by fellow joint lead manager JPMorgan, which valued Vitaco at 18 to 24 times forecast profit for a $315 million to $411 million enterprise value.
Vitaco manufactures and markets nutritional supplements, sports nutrition and healthy snacks and beverages under brands including Healtheries, Nutra-Life and Aussie Bodies.
The business was formed through the merger of supplement maker Nutra-Life and Healtheries in 2007. Vitaco is 72 per cent-owned by private equity firm Next Capital, with other investors and management owning the balance.
According to the termsheet's escrow agreement, Next Capital and Nutra-Life founder Mike Thompson can sell 25 per cent of their shares after the 1H16 results, provided the VWAP of the shares is more than 20 per cent above the offer price.
Management and other existing shareholders are locked in until the date on which Vitaco provides the ASX with its preliminary final report for FY16.
Former UBS managing director Quentin Miller is lead adviser on the deal.
