Pacific Equity Partners (PEP) has appointed three investment banks to float the Spotless Group in what will be a $2 billion initial public offering (IPO). According to the Australian Financial Review (22-23 March), PEP has hired Deutsche Bank, Citi and UBS.
The AFR suggests that the float is ‘on track’ to occur late June quarter. AFR writers Anthony Macdonald and Sarah Thompson note that PEP is waiting for Spotless chief executive Bruce Dixon to sign-off on the company’s 2014/15 budget before committing to the listing.
Apparently Spotless is expected to record earnings of between $250 and $260 million for the 12 months to 30 June 2014 and, states the AFR, is expected to ‘produce forecasts considerable higher for next year’.
‘Spotless is expected to be pitched as a growth company and be meaningful enough to offshore investors.
‘Its annual earnings have grown from $165 million to $260 million under PEP’s ownership, despite closing its international divisions and selling the Braiform coat hangers unit,’ said the AFR report.