Engineering group lodges $13.5m IPO

Local engineering and construction group Aerison is planning to list on the ASX next month, having lodged an initial public offering to raise $13.5 million.

Based in West Perth, Aerison services the mining, oil and gas, infrastructure, and power generation industries. Its clients include regulatory body Pilbara Ports Authority and mining majors Fortescue Metals Group and Rio Tinto.

Aerison has about 125 full-time employees spanning professional, technical, managerial and support roles, in addition to 420 site construction personnel - making it Western Australia's 17th largest engineering company, according to Business News’ Data & Insights.

The company also has a 10,800-square metre fabrication and assembly facility in Forrestfield.

Founded as HVAC Process Engineering Pty Ltd in 1988, Aerison is now owned by chief executive Giuseppe Leone and chief operating officer Daniel Hibbs, who purchased the business from Clearwater Capital in November 2016.

Earlier this month, Aerison lodged a prospectus with the Australian Securities and Investments Commission to raise at least $12 million under an IPO and a maximum of $13.5 million.

Up to 37.5 million new shares will be issued under the offer while 30 million shares will be sold by existing Aerison shareholders.

The IPO is priced at 20 cents and being led by Peloton Capital.

Cardinals Lawyers and Consultants is acting as legal adviser to Aerison.

In its prospectus, non-executive chair Bronwyn Barnes - who has worked with BHP, Fortescue, and Western Mining Corporation - said the IPO proceeds would enable Aerison to fund future growth opportunities and meet obligations on its work pipeline.

She said the business had grown over the years from a specialist environmental engineering company to a broad-based engineering design and construction group.

Aerison achieved revenue of $100.5 million in the past financial year, up 26 per cent on FY19, and underlying earnings of $10.5 million.

The group expects to generate $130 million in revenue during FY21; underlying earnings of $12.5 million; and net profit after tax of $6.4 million.

“This forecast growth is based on Aerison’s strong operational and financial performance to date and existing contracted work…” Ms Barnes said.

Aerison has an order book of $300 million, as at March 31, of which $79 million is expected to be undertaken in the current financial year. The group expects $60 million of work to be undertaken in FY22 and $143 million in FY23 and beyond.

Aerison said it was confident in its future growth prospects, noting a $1.4 billion tender pipeline.

Its IPO will open on May 22, with an ASX listing scheduled for June 29.