Citadel, page-4

Citadel bookbuild next week for $50m IPO

• PRASHANT MEHRA
  
• 1 HOUR AGO

• DATAROOM
  
• INDUSTRIES
  
• EDUCATION
  
• INFORMATION TECHNOLOGY

Interesting IPO looks good.

Education and technology solutions company Citadel Group expects to complete a bookbuild by the middle of next week, ahead of a planned listing by mid-November.
Canberra-headquartered Citadel will sell shares worth around $50 million, or roughly half of the company, which will equally comprise of a selldown by the promoters and fresh capital raising to fund growth, including through acquisitions.
Company executives, along with offer manager Evans & Partners, have been meeting potential investors in Sydney and Melbourne and the group is understood to have attracted a positive response from fund managers.
Citadel operates two main businesses -- technology, and education and training, which contribute 70 per cent and 30 per cent of EBITDA respectively. The group reported EBITDA of $5.6 million for the 2014 financial year, which is forecast to rise to $10.8 million in 2015.
The company is being valued at about 10 times the forecast FY15 earnings.


Its training division includes Australia Business Academy, which offers courses for pre-university students and corporate professionals. Its technology division provides communications and content management solutions to government and private sector clients.