Making its debut on the Australia Securities Exchange today, construction and property development company Diploma Group Ltd shares closed 10 per cent higher at 55 cents, giving it a market capitalisation of $66 million.
The Belmont-based company completed a $9 million Initial Public Offer (IPO) through the offer of 18 million shares at an issue price of 50 cents each, which closed oversubscribed on November 26.
At listing, the company has 120 million shares on issue and a market capitalisation of $60 million.
Diploma Group is a commercial construction and property development business which offers a complete vertically integrated model by managing the entire design process of a project, from initial concept through to final delivery of the end product.
The company employs over 90 staff across both the construction and property divisions. Diploma has grown rapidly and profitably particularly over the past 3 years and following its successful listing intends to implement its strategy of growth in both divisions nationally and internationally.
Diploma Group has forecast a net profit before tax of $10 million on revenue of $100 million for FY08.
This equates to a price earnings multiple of 8.5x and to earnings per share of 5.9 cents.
Managing Director Nick Di Latte said the listing now provided it with the flexibility to expand its operations from a financial perspective through greater access to capital markets.
"It also provides us with the avenue to pursue our growth strategies both in Western Australia and in other geographical areas across Australia and abroad," said Mr Di Latte.
Capital Investment Partners acted as lead manager to the Offer.
