re: ferret's floats
AA) Ferret's Floats: SEEK and PRO-PAC PACKAGING RWE News 8:03:020 11/04/2005 Sydney - Monday - April 11: (RWE Australian Business News) - ***************************
SEEK
ASX code: SEK Issue price: $1.80 to $2.20 Amount sought: $135 million to $187 million Market cap: $560 million (at midpoint of bookbuild) Lead manager: Macquarie Equity Capital Markets Listing date: April 27
No shares are available to the general public in this float. SEEK was established in 1997 and now runs the leading online employment website in Australia and New Zealand. The company also operates in the United Kingdom. It currently has around 10,000 customers a month, which include recruitment agencies, large corporates, government departments and small and medium enterprises (SMEs). "SEEK allows jobseekers to search for jobs in a more efficient manner than that allowed by traditional means. "For recruiters, it provides access to a large audience of job candidates at very significant cost savings relative to print media and with significant functionality benefits," chairman James Packer says. Mr Packer says the Australian and New Zealand online employment market has experienced very strong growth recently with an increase in total revenue of about 46 per cent in the past year alone. He says SEEK has been at the forefront of this growth. "SEEK is a high margin business with strong growth prospects. "It has strong cash flow generation capabilities and a debt-free balance sheet," Mr Packer says. The company has forecast a net profit (before goodwill amortisation) of $19.8 million for the 2005 year, rising to $28.8 million in 2006. This produces PE multiples of 28.3 times and 19.5 times. An annualised dividend of 4.9c is forecast for 2005, rising to 7.2c in 2006, making respective yields of 2.5 per cent and 3.6 per cent.
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PRO-PAC PACKAGING
ASX code: PPG Issue price: $0.50 Amount sought: $11.95 million Market cap: $19.92 million Underwriter: Commonwealth Securities Listing date: May 4
Founded in 1987 by present managing director Jonathan Kahn, Pro-Pac has grown to become a market leader in environmentally friendly, cost-effective packaging solutions. Today, Pro-Pac is the sole manufacturer and supplier of 100 per cent biodegradable flowable void fill packaging products in Australia and a leading distributor of general industrial packaging products. Pro-Pac provides its products to more than 2000 customers across a broad range of industries. Customers include a large number of leading national and multinational corporations including household brand names in industry sectors such as pharmaceuticals, entertainment, homewares and retail. Pro-Pac's key flowable void fill products are dispensed using the company's innovative bulk systems which are installed directly in customers' warehouses, forming an integral part of their supply chain. Pro-Pac has implemented a consolidation strategy in the highly fragmented general industrial packaging distribution market. It has completed the acquisition and integration of four complementary general industrial packaging distribution businesses since October 2003 and continues to assess further acquisition opportunities. Chairman Christopher Deane says the existing shareholders have built a highly successful business and upon completion of the offer will retain around 40 per cent of Pro-Pac in aggregate. The company has forecast a pro forma net profit (IFRS) of $1.75 million for the year to June 30 2005, rising to $2.04 million in 2006. This would produce respective price earnings ratios of 11.36 times and 9.75 times. Revenue is expected to rise from $21.62 million in 2005 to $24.43 million in 2006. The company plans to pay a fully franked dividend of 3c in 2006, along with a special dividend of 0.5c, also fully franked. This would make an annualised dividend yield of 6.0 per cent. ENDS !END
