Welshpool-based mining and earthmoving contractor NRW Holdings Ltd was the best performer out out of the five biggest initial public offers during the September quarter, according to the Deloitte IPO quarterly update released today.
The IPO update coincided with NRW reporting a net profit of $13.9 million for the 2006-07 financial year, up 8.6 per cent on its statutory prospectus forecast profit of $12.7 million.
The company attributed the increase to the forgiveness of a $1 million loan owed to a director related entity - forgiven as part of an agreement with Stark Investments upon a restructuring of the group in July.
Over the year the company enjoyed a 49 per cent increase in pro-forma revenue to $277.6 million, largely driven by its securing of new contracts in its civil contracting division.
Revenue increased a further $20 million from the company's pro-forma prostpectus forecast, which the company said was caused by increased revenue from the Fortescue Rail and Camp project - again attributable to its Civil Contracting division.
Revenues from its Mining Services, Sales and Rental and Services divisions performed below expectations.
NRW offered 152 million shares at $2 each in its IPO. Its share price gained further today to $2.71.
None of the other top five companies in the Deloitte study - RAMS Home Loans, Ellerston GEMS Fund, Babcock & Brown Communities and Orchard Industrial Property - recorded a positive return for investors.
Instead, the five best performing IPOs in the quarter were resources companies Centaurus Resources Ltd, Gulf Mines Ltd, Mavuzi Resources Ltd, Ironclad Mining Ltd and Red Emperor Resources Ltd - four of the five being based in Western Australia.