HAVING completed one of the year’s larger IPOs, engineering contractor GR Engineering Services has delivered stellar returns to investors on its debut on the Australian Securities Exchange.
Shares in the Belmont-based company, which services the mining and minerals processing industries, jumped 89 cents to close at $1.89 on Tuesday.
GR Engineering's initial public offer of 30 million shares at a price of $1 each raised $30 million and valued the company at $150 million.
One of the notable features of the IPO was that the existing directors, including managing director Joe Ricciardo and chairman Barry Patterson, retained all of their stock, rather than selling to new investors.
The company said in its prospectus it expected revenue in 2010-11 of $138.3 million and net profit of $18.8 million.
It reported revenue of $70.6 million for the six months to December 31 and net profit of $10.63 million.
GR Engineering said in the prospectus it was experiencing strong demand for its services as project spending increased within the mining and mineral processing industries.