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Perpetual steams in

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Perpetual has emerged as a major backer of the McGrath Estate Agents’ initial public offering.

McGrath, which is run and co-owned by veteran real estate agent John McGrath, will be the first real estate agency to be listed in Australia for some time when it hits the boards on December 9, in a deal that has Luminis Partners as adviser and JPMorgan and Bell Potter as joint lead managers.

It will begin public life as a company worth $282 million.

Earlier this month, the book build for its initial public offering saw the deal priced at $2.10 per share, equating to 8.8 times forecast earnings before interest, tax, depreciation and amortisation for fiscal 2016.

Fund managers liked McGrath’s cashed-up position, and its opportunities to expand in a highly fragmented industry.


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