Jandakot firm in $49m IPO

Mining services company Tasmea has forecast an increase in revenue to $435 million and net profit to $34 million as it prepares for a listing on the ASX.

The Jandakot-based company has detailed its outlook in a prospectus for its initial public offering.

It is raising a total of $49 million from investors, with $33 million from the issue of new shares while existing shareholders plan to sell $26 million of stock.

The share offer gives the company an indicative market capitalisation of $339 million.

On completion of the IPO, existing shareholders will retain 83 per cent of the company.

Of the new capital, $12 million will be used to repay debt and nearly $6 million will be needed to pay for the IPO while the balance will be retained for future acquisitions and working capital.

The prospectus reveals that 47 per cent of the company’s revenue and about half its 1400 people are from WA.

The geographic split dovetails with a sectoral breakdown, showing that mining and resources account for 61 per cent of revenue, with iron ore by far the largest contributor.

The group comprises 18 operating businesses delivering electrical, mechanical, civil and water services.

Many of those businesses have been acquired over the past 20 years, notably Perth-based Tasman Power, which gave the group a substantial presence in WA when it was purchased in 2014.

The group’s strong WA presence is reflected in its registered office being in Jandakot and its chairman being Perth-based Joe Totaro.

Its second largest market, with 22 per cent of revenue, is South Australia, where founder and managing director Stephen Young is based.

The group’s total revenue is forecast to increase by 18 per cent to $435 million in FY24.

The growth in revenue is forecast to deliver a pro forma consolidated EBIT of $54 million, up 26 per cent, and a pro forma consolidated net profit after tax of $34 million, up 21 per cent.

The share offer at $1.56 per share is priced at 10.1 times the FY24 net profit per share.

The IPO’s joint lead managers were Morgans Corporate, Unified Capital Partners and Shaw and Partners, with Morgans and Unified also underwriting the deal.

Perth-based Thomson Geer was legal adviser.