Matrix to list on ASX after $15m IPO

Malaga-based Matrix Composites and Engineering plans to list on the local stock exchange in a fortnight after raising $15 million through its initial public offer.

The company, established in 1982, is a manufacturer and supplier of specialised engineered products and services to the offshore oil and gas, mining, mineral processing, military and manufacturing industries.

The IPO, managed by Argonaut, had offered 15 million shares at $1 each. Prior to the IPO, Matrix had 48.9 million shares on offer, with shareholders of those to hold 76.5 per cent of the company on listing.

Founding director Max Begley will hold about 45 per cent of the company when it lists on the Australian Securities Exchange, expected on November 17.

Matrix intends to use $13.75 million of the IPO funds towards the development of its Henderson property at the Australian Marine Complex.

"Matrix proposed to consolidate its seven existing facilities located across metropolitan Perth at the 8.4 hectare Henderson site, with the new facility expected to double production capacity and deliver significant operational synergies when complete," Matrix said in its prospectus.

Matrix has forecast 2009/10 revenue to reach $117.7 million and earnings before interest, tax, depreciation and amortisation of $13.7 million. It said the forecasts represented a compound annual growth rate of 56.3 per cent and 63.1 per cent, respectively, for the five year period from July 1 2005.

On the Matrix board is non-executive chairman Nigel Johnson, chief executive Aaron Begley, executive director Paul Wright and non-executive directors Max Begley and Craig Duncan.

The company will have a market capitalisation of $64 million on listing.