Redcape mulls September float on ASX

Pub operator Redcape is expected to advance plans to list on the Australian Securities Exchange in September.

The plans for the $500 million-odd float are being handled by JPMorgan and UBS and come after the advisers have spent the past fortnight briefing prospective investors on the business.

Strong feedback had been received from investors on the prospects of the float, sources close to the company said, following a series of investor education meetings that finished this week.

However, it is understood that owners, York Capital and Varde Partners, want to wait until after reporting season before proceeding with their float plans, which would start with a management roadshow in September, as first revealed by The Australian’s BusinessNow blog.

Choppy global market conditions were also considered to be a factor.

Plans are to raise between $300m and $400m through an IPO, with the existing shareholders to retain between 20 per cent and 40 per cent of the business.

Redcape owns and operates 26 pubs in NSW and Queensland and has a strong gaming customer offer at a time the industry is enjoying positive conditions.

The pubs are considered to be among those with the highest turnover.

Hedge funds seized control of Redcape in 2012 by first acquiring debt from lenders after the business, which was then known as The Hedley Group, buckled under pressure of its hefty loans.

Varde and York have since invested capital in the pubs and made further acquisitions.

Source:  The Australian - 16th July 2015