APM valued at $3.8bn

Perth company APM has an enterprise value of about $3.8 billion, according to research presented to investors ahead of a planned stockmarket float.

Four investment banks have valued the human services business, based on its projected underlying profit (EBITDA) of $294.9 million for the year to June 2022.

The most bullish was Credit Suisse, which said APM could be worth as much as 16.8 times its EBITDA.

That would value the company at $4.95 billion.

At the other end of the spectrum was UBS, which said APM could be worth just 8.9 times its EBITDA.

That would equate to a more modest enterprise value (including debt) of $2.6 billion.

Goldman Sachs, which has been named as lead manager for the planned IPO, was relatively conservative in its valuations, which came in at between $3 billion and $4 billion.

Bank of America Merrill Lynch also valued the fast-growing APM, saying it was worth between $3.6 billion and $4.5 billion.

The average mid-point of the four valuations was $3.8 billion.

The broker reports were presented to potential cornerstone investors this week, as part of a roadshow designed to drum up interest in APM ahead of the formal launch of an initial public offering.

APM is believed to be seeking $1 billion in new capital.

This would make it the largest WA IPO in history, ahead of pre-GFC deals by the likes of Emeco Holdings ($941 million), Alinta Infrastructure Holdings ($925 million) and Multiplex ($900 million).

About two thirds of the money to be raised by APM would go to existing investors.

US-based private equity investor Madison Dearborn Partners is looking to cash-in about half of its 55 per cent stake, according to recent media reports.

Perth-based company founder Megan Wynne and her husband Bruce Bellinge are looking to cash-in a small portion of their joint 40 per cent stake.

The balance would be used to reduce debt, which stands at about $750 million, and to support future growth of the business.

Led by chief executive Mike Anghie, APM has built a global business with 7,500 staff across 10 countries.

It provides a wide range of health, disability and employment services that have been outsourced by governments.

The growth has seen APM’s annual revenue increase to more than $1 billion.