Como-based Forge Group Ltd, the spinout of Perth-based AI Limited's construction subsidiaries, made its debut on the ASX today, closing up 108 per cent from its offer price.
Forge shares were issued at 26.9 cents, finishing trade today at 56 cents.
The company, which implemented its float through a capital reduction and in specie distribution of 54 million shares to AI Ltd stockholders, also granted up to 6.2 million options to its directors and employees.
Forge will consolidate the various branches of AI Limited's construction companies, including namesake firm aiConstruction, under its Cimeco Pty Ltd banner - while acting as Cimeco's holding company.
aiConstruction was established in 2001 through the merger of three existing businesses while Cimeco was acquired by a.i. Limited in July 2006, about one year after Cimeco had bought South West construction company Devaugh Pty Ltd.
The company plans to focus on construction in the iron ore sector, as well as considering further acquisitions.
Forge managing director Peter Hutchinson:
The company retained Blakiston & Crabb as solicitors, appointing Bentley's MRI Perth as Auditors and RSM Bird Cameron Corporate Pty Ltd as investigating accountants.
Cimeco chief executive Andrew Ellison and Blakiston & Crabb partner and commercial lawyer Marcello Cardaci will serve on the Forge board, with Peter Hutchinson serving as the company's managing director.
Mr Ellison was today issued a new employment contract to remain executive general manager of Cimeco, receiving 2 million options in the company as well as a total cost of remuneration of $275,000.