Metroglass IPO gathers pace

TIM HUNTER
Last updated 10:14 02/07/2014

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Institutional investors are due to bid for stock in Metro Performance Glass tomorrow, ahead of an initial public offer expected to value the business at $305 million to $350m.

Market sources say the indicative price range of $1.65 to $1.90 a share implies a pro-forma net dividend yield of 3.8 per cent to 4.4 per cent.

Metro Performance Glass is to be the listing vehicle for the IPO of Metroglass, a commercial and residential glass supplier owned by a consortium of private-equity investors led by Crescent Capital.

Metroglass was sold in 2006 by its owner-operators to private equity firm Catalyst for $366.2m, but ran into trouble in the recession and was sold again in January 2012 to Crescent for $181.5m.

Its most-recent accounts show a company with revenue of $136m and net profit of $8m.

Pro-forma figures for the IPO put the expected price to earnings ratio in a range of 12.5 to 14.5, sources say.

The institutional bookbuild will set the price for a broker firm offer due to close on July 25.

Tomorrow's bookbuild takes place on the same day as that of another IPO, Scales Corporation, whose pricing is due to be announced on Friday.

While Scales published a prospectus on June 20, Metro is choosing to set the price before it publishes a prospectus.

One source said the quick process - details of the offer were sent out to institutions only on Monday - put pressure on investors to understand the business quickly, if they hadn't already done their homework.

"I think it'll get up," he said.

"It just depends on the price."

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