Nice to see an IPO with EV/EBITDA multiples rather than pie in...

Nice to see an IPO with EV/EBITDA multiples rather than pie in the sky Market Cap/Revenue multiples.

Won't be shooting the lights out on listing, but well covered should see it do well.
Definitely one to be adding to the portfolio.


https://www.theaustralian.com.au/business/dataroom/duratec-prices-ipo-for-53m-raising/news-story/190a89127acfdbc013575513f967684b

Duratec Australia is understood to have priced its initial public offering at 50c per share as it looks to raise $53 million.

It is understood that the IPO is already well covered, with fund managers attracted to what they are describing as a high quality niche contractor.

The group is working on its IPO with assistance from Euroz Securities and is expected to list in the coming weeks as a business worth about $100m.

The company operates on Australia’s west coast, east coast and in the Northern Territory.About 60 per cent of its revenue is generated from Western Australia, but is continuing to gain a greater level of market share from the east coast.

Duratec’s main area of expertise is asset remediation, including cladding on buildings and other work with the construction industry.

But its revenue is also generated from defence force contracts, an area which attracts only limited competition.

The company’s three founders remain involved in the business and have been working together for about 25 years.

For the 2020 financial year, the company generated about $21.4m in earnings before interest, tax, depreciation and amortisation.