Diversified print group IVE – which includes the country's biggest sheetfed printer Blue Star – has achieved its IPO, with a successful stock market launch this morning as IVE Group Ltd (ASX code – IGL).
Described as the most anticipated float in the print and marketing communications sector in two decades the listing raised $75.6m for 42.5 per cent of the company owned by Wolseley private equity and the Selig family, and valued the business at $177.7m.
Wolseley, the Selig family and IVE management will keep a 57.5 per cent stake, holding 51 million of the 88.9 million shares between them.
The 37.8 million shares were sold $2 each. The offer values IVE at 4.9 times its forecast 2016 pro forma EBITDA and at 8.1 times forecast net profit after tax and amortisation. The company is forecasting revenue of $355.7m, and a net profit of $19m for the current financial year.
[Related: IVE's IPO]
Geoff Selig will continue as executive chairman of the Group, with Gavin Bell and Andrew Harrison joining the board as independent non-executive directors.
Selig says: “We are delighted with the strong level of support from our high quality cornerstone investors. Our strong financial position and access to capital markets will provide the platform for the company’s continued strategic expansion of its product and service offering.
“Given its heritage that dates back to 1921 with the launch of a local newspaper by my grandfather, it is extremely rewarding to be able to present a business of this calibre and diversity to the market.
“The strong underlying fundamentals of the business are testament to our wonderful staff, the depth of our customer relationships, combined with a sound strategic roadmap and significant investment over a very long period of time.”
IVE is one of Australia’s most diversified marketing communications businesses, with an unparalleled product and services offering, holding leading positions across many of the sectors in which it operates.
The float comes three years after the Seligs backed by Wolseley took Blue Star out of the Champ p/e chapter.
It is the first successful flotation of a print business since Colorpak and the biggest in the history of Australian print – although IVE is now much more than print.
The company rebranded and restructured as IVE in April this year following nine strategic acquisitions, and now operates as four divisions.
IVE is the parent group of the country’s biggest sheetfed printer Blue Star Print, which is now one part of one of the four divisions of the diversified group; IVEO, Blue Star Group, Kalido and Pareto.
IVE’s four major divisions each have with multiple operating businesses: IVEO designs, implements and manages seamless multi-channel business communication solutions; Blue Star is print, display, warehousing and logistics, personalised communications and promotional merchandise, and Kalido is a creatively led technology agency that brings together the full spectrum of strategy, creativity, design and technology, and Pareto is a telemarketing and fundraising business.
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