Perth-based earthmoving group, NRW, is expected to float on the Australian Securities Exchange as early as next month after an initial public offering, which is expected to raise about $250 million.
Perth-based earthmoving group, NRW, is expected to float on the Australian Securities Exchange as early as next month after an initial public offering, which is expected to raise about $250 million.
WA Business News understands NRW had been considering a sale to private equity players but has instead opted to sell shares to the public after some recent big international and domestic contract wins. It is believed that NRW hopes to list on the ASX at the end of August.
It is understood that investment bank UBS is advising NRW.
WA Business News first revealed NRW could be considering a stock market float in April following the company’s acquisition of Action Mining Services and an earlier restructure of its corporate entity, something which is common ahead of ASX listings.
NRW Pty Ltd was formed in 1994 by Jeff McGlinn and John Silverthorne, both of whom are still heavily involved in the company’s day-to-day operations.
Mr McGlinn and Mr Silverthorne’s company, NRW Holdings Pty Ltd, applied to the Australian Securities and Investments Commission to have its company status changed from a private to public company on February 12.
NRW general manager Jules Pemberton is also a shareholder of NRW Holdings, as are NRW chief financial officer Gino Chiarelli and operations manager Peter Miguel.
Mr McGlinn and Mr Pemberton were unavailable for comment at the time of publication.
NRW recently gained a slice of Fortescue Metal Group’s $2.6 billion rail and port infrastructure project in the Pilbara.
FMG revealed last week that it had awarded NRW, along with Brierty Pty Ltd, work on the infrastructure project alongside BGC Pty Ltd, which was originally the sole contractor.
But unlike BGC, which has a reimbursable contract, NRW has a lump sum fixed price contract, which means it is liable for any cost blowouts.
FMG said the revision of the BGC rail earthworks contract meant only 70 kilometres of the 260km of railway earthworks were under a reimbursable contract.
It said NRW would perform work on the more difficult Chichester Range area of the railway under a lump sum contract.
It is understood NRW has also recently won other big contracts.
NRW is just one of several in the mining services sector looking to capitalise on the booming business conditions.
East Perth-based underground mining specialist, Barminco, put its hand up for a trade sale earlier this year with the deadline for offers closing at the end of last week.
Leading Australian engineering and contracting group Leighton Holdings has confirmed that it had lodged an indicative offer for Barminco, which had revenue of about $350 million in 2004-05.
Leighton is already Australia’s biggest mining contractor, through its subsidiaries Leighton Contractors, Thiess, John Holland and HWE Mining, which it bought in 2006.
NRW, which was an underbidder for HWE Mining, snapped up Steve de Mol’s Hazelmere-based earthmoving business Action Mining Services for an undisclosed sum in April.
Meanwhile, shares in drilling services company, Ausdrill, have been on the rise since it revealed in mid-May that it had received a takeover approach from an unnamed party with assets of $2 billion.
