Redcliffe-based construction services company Global Construction Services Ltd has debuted strongly on the Australian Stock Exchange, rising 20 per cent from its offer price to close at $1.20.
Redcliffe-based construction services company Global Construction Services Ltd has debuted strongly on the Australian Stock Exchange, rising 20 per cent from its offer price to close at $1.20.
The company, which offered 20 million shares at $1 each in its initial public offer, plans to use the proceeds to finalise the acquisition of formwork and labour services provider CASC Constructions Pty Ltd, as well as for futher working capital.
Upon listing, GCS had 65.3 million shares on issue and a market capitalisation at the listing price of $65.3 million.
The company is chaired by Perth Airport's General Manager Property Neil Kidd, with former PCH Group director Enzo Gullotti serving as managing director.
They are joined on the company board by former Territory Iron chair David Macoboy and Sam Mangione as non-executive directors, and company secretary Gabriel Chiappini.
BDO Kendalls served as investigating accountant to the offer, with legal advice provided by Hardy Bowen Lawyers.
Bell Potter Securities acted as lead manager and underwriter to the Offer.
The full text of a company announcement is pasted below
Construction services group Global Construction Services (ASX: GCS, "GCS Group") today made its debut on the Australian Stock Exchange.
The Company has completed a $20 million Initial Public Offer (IPO) through the offer of 20 million shares each at an issue price of $1.00 each. Upon listing, the Company has 65,328,058 shares on issue and a market capitalisation at the listing price of $65.3 million.
GCS Group is a diversified construction services company that provides scaffolding, formwork, material hoists and temporary accommodation to customers in the residential, commercial and industrial construction industry.
The Company has grown rapidly and profitably in Western Australia over the past 4 years and on listing will implement a strategy to pursue organic and acquisitive growth opportunities throughout Australia.
For FY08, GCS Group has forecast a net profit of $8.2 million on revenue of $52.2 million.
This equates to earnings per share of 12.5 cents and a price earnings multiple at the $1.00 issue price of 8 times.
In May 2007, GCS Group acquired CASC Constructions Pty Ltd, a Western Australian company providing formwork and related labour services as a sub-contractor to large construction companies undertaking major construction projects.
GCS Group will use the proceeds of the Offer to fund the final payment for the acquisition of CASC Constructions and for working capital as the Company embarks on its growth strategy of expanding the existing businesses and targeting acquisitions.
Managing Director Enzo Gullotti said GCS Group was very pleased with the strong investor support for the IPO, especially from the range of institutional investors who have become shareholders.
The IPO closed substantially oversubscribed on 3 August 2007.
Mr Gullotti said GCS Group was a proven operator in its sector and the ASX listing was the next logical step for the Company as it pursues its growth strategy.
"The ASX listing will provide us with ongoing access to the capital markets to fund future growth opportunities and provide increased financial flexibility as we embark on a strategy of organic and acquisitive growth," said Mr Gullotti.
"Over the next 12 months, we plan to expand our product and service range and broaden our customer base significantly."
"We are delighted to offer our shares to retail and institutional investors and commit to delivering long term shareholder value," he said.
Bell Potter Securities acted as lead manager and underwriter to the Offer.