Green’s Foods hits the road for IPO Prashant Mehra 6 Nov, 12:49...

Green’s Foods hits the road for IPO

• Prashant Mehra
• 6 Nov, 12:49 PM

Food products manufacturer Green’s Foods Holdings will jump on the IPO bandwagon next week, with roadshows planned for Sydney and Melbourne ahead of an ASX listing in mid-December.
The company, which owns brands including Green’s cake mix, Lowan muesli and Poppin popcorn, is selling 31.4 million shares worth $47.2 million in the float, or about 52 per cent of the company.

The offer comprises of a selldown worth $20 million by major shareholder CVC Ltd, and fresh capital raising worth $27.2 million. The proceeds will be used towards repaying debt worth $12.5m, paying management incentives worth $12.5m and for issue costs of $2.5m.
The issue size and structure has been streamlined from the previously planned $64 million, reportedly after feedback from institutional investors.

Shares will be offered at $1.50 each, pricing the issue at about 10.1 times the forecast earnings for 2015, according to the term sheet.

The company will have a market value of $90.7 million on listing, and enterprise value of 6.5 times the forecast earnings before interest, tax, depreciation and amortisation (EBITDA) in 2015.
The shares will have an unfranked dividend yield of 7.8 per cent for 2015.

Green’s, which operates on a calendar year, has forecast EBITDA of $17.3 million for 2015, up 34 per cent from the previous year. It has forecast revenue of $195.7 million in 2015.

The company, which started out as a family business in 1978, is now the second largest Australian-based biscuits manufacturer. It is being fronted by Robert Wright, who also chairs Super Retail Group. Shane Noble, who has held senior roles in PepsiCo/Frito-Lay, Arnott’s and Goodman Fielder, serves as chief executive.

The company plans to lodge its prospectus with the regulator in the week starting November 17. The IPO is being managed by Morgans and Moelis & Co.
([email protected])