Costa Group launches IPO, seeking to raise up to $637.4m
Jun 25 2015 at 10:09 AM Updated 1 min ago Sarah Thompson , Anthony Macdonald , Jake Mitchell
Costa Group is seeking to raise $541 million to $637.4 million for an initial public offering which would see it list with up to a $839.4 million market capitalisation.
Costa's bookrunners Goldman Sachs and UBS sent the terms to fund managers on Thursday morning.
The IPO was priced at $2.20 to $2.70 a share which was 14.8-times to 17.6-times forecast 2016 financial year net profit after tax.
If successful, the fruit and vegetable grower would list with a $703.9 million to $839.4 million market capitalisation on July 24, according to a termsheet sent to potential investors.
Major shareholder Paine + Partners was seeking to retain a 12.4 per cent stake on listing, while the Costa Family would own 10.5 per cent. The two shareholders' stakes would be placed under escrow.
The offer price also implied a 3.4 per cent to 4.1 per cent dividend yield in the 2016 financial year.
Costa will seek to raise the money and determine final pricing at a bookbuild on July 21 and 22, as reported by Street Talk on Thursday morning.
Retail brokers are due to have bids in by July 16.
