Mantra prepares for IPO
Accommodation operator Mantra is preparing to float on the Australian Securities Exchange (ASX) on 27 June and is looking to raise $239.1m in capital.
The company will offer approximately 132.8 million shares to the market at a price of $1.80 per share. Its market capitalisation post listing is expected to be $449m.
The initial public offering is priced at 12.7 times 2015 forecast earnings, with a fully franked yield of 5.5%. The S&P/ASX200 index historically trades at an average of around 15 times earnings.
Earlier this year the group called off plans for a float, blaming a shift in market sentiment.
Mantra Group is an Australian accommodation operator with the second largest network of hotels, resorts and serviced apartment properties in Australia by total room number.
The group has a total portfolio of 113 properties and over 11,600 rooms across Australia, New Zealand and Indonesia.
Mantra operates three separate brands with ‘Peppers’ positioned as a luxury hotels operator of resorts, predominantly in iconic leisure locations with a strong focus on high quality food and wine.
The Mantra brand itself is positioned at the premium hotels, resorts and serviced apartments market in both corporate and leisure locations.
‘BreakFree’ by contrast is positioned as an operator of quality but affordable hotels, resorts and serviced apartments focused on providing facilities at a reasonable price.
The retail offer, which is open to clients of brokers that have received an allocation, eligible employees and eligible property owners, is expected to open on 10 June and close on 17 June 2014.
Source: My Wealth - 6th June 2014
