KEY POINTS:
Opus International Consultants' eagerly awaited $50 million sharemarket float will fund an ambitious international growth strategy that will see the company tap the market for more capital to fund overseas acquisitions over the next five years.
The civil engineering company, which sprang from the privatised Ministry of Works
in 1998, registered documents yesterday for a float of 21 per cent of its stock.
Opus is offering a total of 29 million new and existing shares to institutions and to retail investors via New Zealand brokers at between $1.45 and $1.70 a share. Employees will be offered shares at a 3 per cent discount to the final price which will be fixed on October 8.
That will raise $42 million to $49.2 million, and give the company a market capitalisation of between $197 million and $231 million.
But with zero net debt, the company has no pressing need for new capital ... at present.
Chairman Basil Logan said the public listing was partly to enhance the ownership culture the company has with its key employees.
"Secondly we wanted to be able to have the access to the capital markets to enhance our objective, which is to grow by acquisition."
Opus, which already has a significant presence in the UK, Canada and Australia, plans to double the size of its overseas operations over the next five years.
Chief executive Kevin Thompson said that would see staff numbers increase from 2145 at present to 3500 and revenue rise from $250 million in 2006 to $500 million over the period.
"Over those five years we want to move to become a truly global player ... " Opus' expertise is in the development and management of infrastructure - primarily roading, water treatment and reticulation, and buildings.
Despite the recent market volatility and the cancellation or postponement of other floats recently, including that of ING's Real Living retirement home business yesterday, Logan said this was "a fabulous time" for Opus' offer.
"We're out there in the market with not much else on offer. We've got investors who don't know where to put their money and I'm sure they'll recognise, with the right advice, that we're a real business with a great track record of growth."
At present 86 per cent of the company is owned by Malaysian-controlled Opus International Group.
Following the float that will fall to 66 per cent, and will decrease again to 61 per cent if all employee options are exercised over the next few years.
"While it looks like a little chip off their block, they're really committing to sell down to 51 per cent," said Logan.
Taking Stock
* Civil engineering firm Opus has confirmed it will raise $42 million to $49.2 million in an initial offer of 21 per cent of its stock which opens tomorrow.
* It expects about 10 per cent of its stock will be taken up by institutions, 10 per cent by retail investors and the balance by employees.
* Its shares will begin trading on the NZSX on October 30.