03/11/2005 - 10:20

AHG debuts with a 14 per cent premium

03/11/2005 - 10:20

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WA car retail giant Automotive Holidings Group had a positive debut of the ASX, opening at $1.14, a healthy premium on its $1 issue price.

AHG debuts with a 14 per cent premium

WA car retail giant Automotive Holidings Group had a positive debut of the ASX, opening at $1.14, a healthy premium on its $1 issue price.

About 4 million shares were traded in the first half hour and the stock hit a high of $1.20. It was trading at $1.15 at the time of this article.
AHG also announced an expandion of its logistics division, with news that Rand cold storage and distribution had committed $4 million per annum to a new Sydney facility in Homebush fior the next 15 years.

AHG Background: The Company raised $45.7 million through the issue of 45.7 million shares at an issue price of $1 each. On
listing, AHG has 140 million shares on issue.
AHG is forecasting FY06 net profit of $16.9 million on revenue of $1.58 billion. Based on forecast earnings
per share of 12 cents for FY06, AHG is listing on a price earnings multiple of 8.2 times at the Offer price of
$1.00.
The company is forecasting a FY06 dividend of 8.5 cents per share, putting the company on a fully franked
dividend yield of 8.5%.
AHG Chairman Bob Branchi attributed the successful IPO response to AHG's track record of growth and
its compelling business model.
"The strong interest AHG has received from both retail investors and institutions indicates backing for the
Company's business model," he said.
"AHG has enjoyed strong growth in both our automotive retail and logistics businesses and we expect to
continue that growth in coming years."
"We are gratified by the immense support we have received and now look forward to delivering long term
value for our shareholders."
Chief Executive Officer Bronte Howson said AHG had traded strongly since the start of the 2006 financial
year and was on track to meet Prospectus forecasts.
"In automotive retailing, sales of new and used cars are tracking ahead of the 2005 financial year levels,"
said Mr Howson.
"The Logistics division is trading ahead of budget and above 2005 levels."

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