Shares in Simonds Group fell more than 7 per cent on its ASX debut today, as investor appetite dampened amid weaker markets and a crowded calendar of listings this month.
The stock opened lower at the start of trading but soon slipped as much as 7.3 per cent. By 12.32pm (AEDT), the shares were trading down 6 per cent at $1.67.
The Victorian home builder had issued shares at $1.78 each in a $161 million initial public offering. The offer raised $10m in fresh capital for the company, with the balance comprising of a sell down by founder Gary Simonds and his team. The founders retain a 37 per cent stake in the company.
The group operates two main businesses — Simonds Homes, a major home builder in Victoria, and a vocational training business, Builders Academy Australia, which offers building and construction courses.
The company has forecast a net profit of $20.4m in FY15 on revenue of $638m. It expects EBITDA of $34m for the year.