Shares in Brierty Ltd have debuted at a 75 per cent premium to its $1 issue price as it revealed it was in exclusive negotiations to buy WA civil contractor Wormall Pty Ltd for between $55 million and $60 million.
Shares in Brierty Ltd have debuted at a 75 per cent premium to its $1 issue price as it revealed it was in exclusive negotiations to buy WA civil contractor Wormall Pty Ltd for between $55 million and $60 million.
Shares in Brierty Ltd have debuted at a 75 per cent premium to its $1 issue price as it revealed it was in exclusive negotiations to buy WA civil contractor Wormall Pty Ltd for between $55 million and $60 million.
Brierty shares surged to $1.75, lifting its market capitalisation to more than $190 million, before closing at $1.72.
Brierty said it has entered a standstill agreement with Wormall Pty Ltd that offered a three-month exclusivity period that could lead to the potential acquisition of the contractor and would involve either a combination of "cash and scrip or straight scrip" to the vendors of Wormall.
It said it expected the transaction would be completed early in 2008.
Brierty said Wormall was a private civil contractor trading as Wormall Contracting and Wormall Plant Hire Pty Ltd.
"The potential acquisition, if it proceeds, is expected to make a positive contribution to the profits of Brierty Ltd," the contractor said in a statement.
Brierty recently raised $60 million from investors, which included the sale of 30 million shares by the Brierty family and staff members.
Brierty directors and company founders Alan and Kylie Brierty retained a 45.5 per cent stake in the company, which based on today's initial strong share price was worth $84 million.
Brierty is one of several to many hitting the stock exchange boards in the wake of bumper revenues on the back of the resources boom.
Frank Tomasi's Southern Cross Electrical Ltd, which raised $58.8 million in its initial public offering, closed 3 cents higher at $1.69, or 69 per cent above its $1 issue price.
Brierty is forecasting revenue growth of 25 per cent this financial year to $199 million. It is expected to post earnings before interest and tax of $16.3 million and a net profit after tax of $5.2 million.
Brierty, based in Maddington, has worked on projects across Western Australia and employs 400 permanent personnel.