Primero in steady ASX debut after $25m IPO

Local engineering company Primero Group made a steady debut on the ASX today after completing a $25 million initial public offering.

The company issued 62.5 million shares at 40 cents each, with Canaccord Genuity acting as lead manager to the offer.

The offer was one of the largest IPOs by a Perth-based company in recent years, since Australis Oil & Gas raised $30 million in 2016.

The listing comes after a period of strong growth for Primero, which has secured several big contracts in the lithium sector while expanding overseas.

The company is forecasting $79.9 million annual revenue and underlying earnings (Ebitda) of $8.6 million in the year to June 2018.

That compares to $52.1 million and $2.6 million respectively in the prior year.

The prospectus also discloses that Primero has contracted revenue of $66.9 million in FY19.

Primero was established in 2011 and two years later was a winner in the Business News Rising Stars awards.

The company is led by managing director Cameron Henry, who also serves on the board of Titan Minerals.

Incoming chairman, Mark Connelly, is chairman of Calidus Resources, West African Resources and Tao Commodities, and a director of Ausdrill and Tiger Resources.

The company has also appointed Strandline Resources chief executive Luke Graham as a non-executive director.

Shares in Primero finished the day up 2.5 per cent at 41 cents each.