Interested to hear if anyone has heard of this IPO MTO, Synopsis of company:
Morgans is the Lead Manager and Underwriter to the IPO of Motorcycle Holdings Limited ("MTO").
The IPO is expected to raise a total of $46.3 million at $2.00 per share. Post the raising, MTO will have a market capitalisation of $75.9 million.
Founded in 1989, MotorCycle Holdings (“MTO” or the “Company”) is Australia’s largest motorcycle dealership operating 34 franchises from 24 locations in QLD, NSW and the ACT.
MTO core business consists of the ownership and operation of motorcycle dealerships engaging in the sale of new and used motorcycles as well as parts and accessories, motorcycle servicing, and the facilitation of allied consumer finance and insurance. MTO also owns and operates a rider training school and a motorcycle repair business which performs repair work for insurers.
The Company represents a diverse portfolio of brands. In the new motorcycle category MotorCycle Holdings sells 8 of the top 10 selling motorcycle brands in Australia (by number of new motorcycle sales). In 2015 these 8 brands represented 84% of Australian new motorcycle volume. In the used motorcycle category the Company sells all of the top 10 selling brands in Australia.
Investment Highlights:
· Australia’s largest motorcycle dealership operator with a 27 year of history
· Proven business model with strong OEM relationships and diversified revenue streams
· Substantial growth opportunities through organic initiatives and strategic acquisitions (highly fragmented industry with 700 + dealerships)
· Experienced Senior Management team (SMT) led by CEO David Ahmet with a proven track record. The CEO and SMT will be substantial shareholders and will not be selling down ordinary equity at IPO
· Strong financial metrics with consistent earnings growth, operating cash flow and conservative gearing, FY13-FY16F CAGR Revenue of 10.3% and EBITDA 21% respectively
· Centralised business process with head office management driving dealership performance across the various income streams
