KEY POINTS:
Early indications are that choppy market conditions won't prevent shares in local engineering outfit Opus International Consultants being snapped up when they go on sale this month.
The prospectus for Opus' partial float will be released on Wednesday.
Latest word is that the offer, which will be in
the region of $40 million to $50 million, a slightly lower figure than expected, has generated good interest among fund managers.
"Given the market, it will probably be priced quite sensibly and it's relatively small," said one senior analyst last week. "It's a do-able deal."
"Capital always finds its way to good companies regardless of the climate," said Fisher Funds Management chief investment officer Warren Couillault, who met Opus' management team two weeks ago.
He says the company has a very good history of financial and geographical growth.
"It's got an established and well-regarded position in New Zealand and it's building up an offshore network in Australia, Britain and Canada doing the same sort of things they're well known for in New Zealand.
"It looks like the type and quality of company that would be a welcome addition to the market."
Opus, the former Ministry of Works, has been involved in the engineering for most of New Zealand's largest infrastructure projects, including all of the hydro-electricity schemes and the motorways in Auckland, Wellington and Christchurch.
More recently it did the civil and structural design for the Britomart transport centre, although it is primarily a roading projects company.
Opus was privatised in 1988 and then bought by Malaysian firm Kinta Kellas in 1996. It is understood the owners want to sell a chunk of the company to raise cash for investments in Malaysia but will retain a 51 per cent stake in the business.
Staff, numbering around 1900, own another 25 per cent through options granted over the past few years which will be realised at the float - another motive for the sharemarket listing.
That leaves 24 per cent to float on the NZX, although staff may sell some of their shares in the initial public offering as well.
Opus earned $252 million last year, mostly from New Zealand projects, and its earnings before interest, tax, depreciation and amortisation is understood to be about $20 million.
It is estimated to have an enterprise value of $170 million to $180 million.
This month it bought Australian infrastructure consultancy Qantec McWilliam Consulting Engineers, more than doubling its employees in Australia to 300.
In July it bought Queensland engineering and architectural company Group 42 Consulting. The company was focused on international expansion, chief executive Kevin Thompson said at the time.
IN THE WORKS
* A prospectus for the partial float out on Wednesday.
* The offer expected to raise $40m to $50m.
* The company is the former Ministry of Works and Development.
* It was bought by Malaysian company Kinta Kellas in 1996, which renamed itself Opus International Group.
* More than 1900 staff in New Zealand, Britain, Canada and Australia.
* Revenue of $252 million last year.
