CMA to raise $9m

CMA Corporation has launched an IPO offer of 22.5 million shares at 40 cents a share, in order to raise $9 million. The shares offered under the prospectus will represent approximately 17.5 per cent of the issued capital of CMA following completion of the offer. On completion of the offer, CMA will have 128.5 million shares on issue and a market capitalisation of $51.4 million at the offer price. CMA is an Australian-based scrap metal and contracting group with strong links to WA through the involvement of Rob Moltoni, whose demolition and scrap business was merged with Melbourne-based Adams brothers to form Moltoni Adams in 2001. The company was established in March through the merger of scrap metals trader T&T Group and Moltoni Adams. The group has integrated operations in the supply, processing and exporting of scrap metal and in resource sector plant deconstruction, industrial demolition, site clearance and remediation. CMA is forecasting a pro forma pre-tax profit of $10.5 million on pro forma operating revenue of $94 million for the year ending June 30 2005. In its prospectus, CMA is forecasting pre-tax profit of $14.2 million for the year ending June 30 2006 on revenue of $102.7 million. The company proposes to distribute a minimum of 55 per cent of net profit after tax in dividends in future years. The offer is being fully underwritten by Bell Potter Securities.