According to the last information given by the company, they...

According to the last information given by the company, they expect to list their EMEA operation during Q1 or Q2 25 (calendar year), which is quite close now.
Servcorp is expected to list 30 % of its EMEA operations (it now owns 100 %).

2 main reasons to list its EMEA operation :
- Servcorp valuation today remains quite low, with a market cap of 492 m$ and an EV of 377 m$, which represents less than 10 x its last NPAT and a free cash flow yield over 10 %,
- EMEA is now the most interesting part of Servcorp business, with the strongest growth (of their 4 areas) and the highest margin.
So, Servcorp expects to get a growth multiple for this part of its business, representing around half of its profit.

Servcorp estimated sum of the parts :
- net cash today : 115 m$ (including total unencumbered cash),
- 100 % of EMEA today : 400 m$ (Alf estimate in interview with Aus biz in Aug 24)
- other businesses : 195 m$ (my estimate based on a PE of 10 x for the other activities).
Total estimated sum of the parts : 710 m$ or 7.20 $ per share.
Another way to look at it : today's market cap of 492 m$ is less than the combined value of EMEA + cash.

EMEA valuation of 400 m$ comes from a multiple of 14 x of mature profit (28.3 m$ in FY 24).
Such a multiple seems justified by the fact that EMEA keeps growing (revenues from 82 m$ in FY 22 to 120 m$ in FY 24), while it shows a significant operating leverage (margin went from 13 % in FY 22 to 24 % in FY 24).

2 main risks of this stage that the company may not reach the value of its sum of the parts :
- still a risk that they do not succeed to list their EMEA operations (final decision expected at the beginning of FY 25),
- uncertainty regarding the way Servcorp will use its cash (now 115 m$ and will probably double after EMEA's listing).