IPO cavalcades roll on with Mantra, Burson Auto
UBS and Macquarie Group may price the initial public offering of Mantra Group as soon as the end of next week as the management of Australia’s second-largest hotel operator begin a deal road show today.
Mantra's management and bankers have not decided whether to spend two or three weeks on the road. Initially the plan was to visit fund managers in Australia and Asia but the road show may also travel to the UK and US.
If Mantra management does visit the US and the UK, the Mantra IPO may not be priced for more than three weeks. The road show will probably coincide with a book build.
Mantra, which plans to raise about $500 million, manages but does not own 130 hotels in the Peppers, BreakFree and Mantra chains in Australia, New Zealand and Indonesia. The company was purchased by buyout firm CVC Asia Pacific in 2008. CVC then gave UBS, which financed the acquisition, a 40 per cent equity stake in Mantra in a debt-for-equity deal. CVC tried to sell Mantra in 2012 but the transaction, reportedly worth $600 million, failed.
Mantra’s sales totaled $431 million in 2013 and the company has forecast earnings before interest taxation, depreciation and amortization in the year to June 30 2014 of about $63 million.
In other IPO news, Burson Auto Parts has embarked on an investor education road show. Analysts for the next two weeks will meet with fund managers and report their views and forecasts for the car part supplier’s future earnings.
UBS and Morgan Stanley are the lead managers of the Burson IPO, which may raise as much as $400 million, according to the Australian Financial Review. After the analyst road show, Burson's chiefs are expected to follow with a management deal road show that is likely to coincide with the pricing of the IPO.
Quadrant Private Equity No. 3 fund, a $750 million capital pool, made an investment in Burson in October 2011 as part of a management buyout, the private equity firm’s web site says. Quadrant managing director Chris Hadley was not available for comment, the buyout firm told Data Room.
Source: The Australian - 10 March 2014
