A billion-dollar packaging giant with strong links to Visy has received strong investor support in its initial public offering.
Pact Group valued itself at $1.1 billion, or 8.5 times EBITDA, and forecast raising $649 million in the float.
The book build was completed on 26 November and was "heavily over-subscribed", according to Pact.
That included "strong interest from both domestic and offshore institutional investors as well as from the syndicate brokers".
The Melbourne-based group was founded in 2002 by non-executive chairman Raphael Geminder. It said it had grown during that time from 15 manufacturing plants and revenue of $223 million to 62 plants and forecast revenue of $1.2 billion for 2013-14.
Pact shares are expected to start trading on 19 December, with Geminder set to retain ownership of about 40% of the company.
[Related: Amcor creates new packaging giant]
Geminder is the multimillionaire son-in-law of Visy's former chairman, the late Richard Pratt. Geminder's wife has a one-third stake in Visy, according to The Australian.
Geminder plans to transform Pact into a $5 billion enterprise within five years, according to The Australian.
"It has made more than 35 acquisitions since Mr Geminder led a management buyout of the industrial packaging assets acquired by Visy from Southcorp in 2002, which formed the centrepiece of Pact," according to The Australian.
"Pact has its own internal mergers and acquisitions team, which is said to have looked at more than 1,000 businesses over the past decade."
Pact has operations in Australia, New Zealand and Asia.
Geminder said: "We have a market-leading position in Australia and New Zealand and an emerging position in Asia’s fast-growing packaging market.
"As we continue to pursue opportunities for growth through innovation, best-in-class technology, acquisitions and geographic expansion, I believe Pact is well-placed to deliver attractive returns for shareholders."
[Related: Pro-Pac signals halt to M&A spree]
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