Bravura Solutions IPO by Macquarie and Goldmans, page-3

As preparations for the initial public offering of Bravura Solutions swing into action, the main challenge for the company and its management will be convincing prospective investors that it will not face fallout from Britain’s exit from the EU.
About half of Bravura’s revenue is derived from Britain and some predicted the deal would face delays after Brexit.
However, yesterday sources close to Bravura said Brexit would be a positive for the business, as more companies moved to outsource operations to drive down costs.
Bravura has plans to launch an IPO before Christmas.
Research from analysts at the investment banks working on the deal was distributed yesterday. As reported online by The Australian, Macquarie analysts expect Bravura to list as a business worth between $353 million and $425m.
Macquarie’s earnings for the company equate to between 16.6 and 20 times the group’s forecast annual net profit and between 14.5 and 17.5 times its earnings before interest and tax.
Goldman Sachs analysts have ascribed a value of between $358m and $429m to the company, equating to between 16.8 and 20.2 times its forecast annual net profit.
Bravura provides software to the wealth management industries globally. Half of its revenue is generated from its flagship Sonata product, which has at least 70 blue-chip clients.
It hopes to capitalise on large and rapidly growing addressable markets that are undergoing change. Its compound annual earnings before interest, tax, depreciation and amortisation growth rate is at 27 per cent.
Spending by companies on information technology in various global markets is forecast to grow by 7 per cent annually to 2020.
For fiscal 2017, Bravura expects to secure $191.3m in annual revenue and $32.7m in EBITDA. Once listed, Bravura will have a dividend yield of between 3.5 per cent and 4.2 per cent, with a 70 per cent cash payout.
Bravura has Macquarie and Goldman Sachs as joint lead managers. Fort Street is the company’s adviser.