McConnell Dowell aims for ASX listing

Engineering and construction contractor McConnell Dowell, including its subsidiary Built Environs, is aiming to list on the ASX as part of a restructuring by its South African parent.

Aveng Ltd announced today it plans to split itself into two independent and separate entities, with the larger being McConnell Dowell.

It also plans to sell its Africa-focused contract mining arm, Moolmans.

Melbourne-based McConnell Dowell is currently working on two major projects in Western Australia.

It has a contract to build marine structures, including a 2.4-kilometre jetty and conveyor, for BCI Minerals’ Mardie salt and potash project.

The contract was valued at $190 million when announced in January 2022.

BCI’s latest quarterly update said the marine package was 66 per cent complete.

A joint venture led by McConnell Dowell also has a $246 million design and construct contract for the Midland train station project.

The project has a total cost of $315 million.

McConnell Dowell has a 51.6 per cent stake in the joint venture, which also includes Georgiou, Arcadis and BG&E.

Aveng has appointed Macquarie Capital to advise on the restructure and possible listing on the ASX.

It comes after McConnell Dowell chief executive Scott Cummins was appointed Aveng CEO last November.

The South African group also changed its reporting currency to Australian dollars to reflect the significance of its Australian operations.

Aveng has reported a 27 per cent increase in revenue from continuing operations to $3.1 billion for the year to June 2024.

Within this total, McConnell Dowell’s Australian business unit contributed $2 billion while Built Environs achieved a lift in revenue to $419 million.

Built Environs bought Perth Building Company in 2010 but does not appear to have significant work in WA presently.

Aveng’s increased revenue helped the group achieve operating earnings of $34.5 million, after a loss of $86 million in the prior year.