Price range set for Integral Diagnostics shares
BRIDGET CARTER THE
AUSTRALIAN, 21 SEP, EQUITY CAPITAL MARKETS
Shares in the radiology company Integral Diagnostics have been priced at a range of
between $1.91 and $2.33.
The range equates to between 15 and 18 times the company’s forecasted earnings for the
2016 financial year. Integral embarked on marketing roadshow for analysts last week for its initial public offering
plans and has brought forward its management roadshow to today on the back of positive
investor feedback on the deal.
UBS and Morgan Stanley are joint lead managers for the float, while Highbury Partnership is
the deal adviser.
Investors will be no doubt comparing the offering to the IPO of rival IMed,
which has Macquarie Capital, Goldman Sachs as its joint lead managers and Rothschild as its adviser.
IMed is a larger company with fewer doctor shareholders and international exposure, while
Integral has more exposure to regional areas in its Australian business, sources said.
Last week, Morgan Stanley analysts estimated Integral’s enterprise value to be between
$333.7 million and $388.6m, equating to between 15.5 and 18.5 times its forecasted
earnings for the 2016 financial year.
It is understood that Integral, which makes about $37m in annual earnings before interest,
tax, depreciation and amortisation, has plans to raise about $150m, although the exact
amount largely depends on the selldown by the doctors, said to be mostly committed to
retaining their shares in the company.
Operating at 44 sites across Australia, Integral is expected to yield 8.3 per cent growth on EBITDA
for fiscal 2016, according to Morgan Stanley research.
