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Book closes early for $161m Simonds IPO

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Victorian homebuilder Simonds will lodge its IPO prospectus with the regulator on Wednesday after completing the bookbuild of its $161 million initial public offering early.

The offer attracted strong institutional interest on Monday and was easily oversubscribed.

The bookbuild had been brought forward by three days to cater to the positive response during roadshows earlier this month.

Simonds shares have been priced at $1.78 each. The company has forecast a net profit of $20.4 million in fiscal 2015 on revenue of $638 million. It expects EBITDA of $34 million for the year, of which 70 per cent will be from its core construction business and the balance from its vocational training business, Builders Academy Australia.

The IPO will raise $10 million in fresh capital for the company, with the balance to be garnered by founder Gary Simonds and his team through a stake selldown. The founders will retain a 37 per cent stake in the company, while management will hold 3 per cent.

(Reporting by Prashant.mehra@businessspectator.com.au)

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Homebuilder sees strong institutional interest, will lodge prospectus on Wednesday.

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