Mader eyes future growth after solid debut on ASX
Perth-raised Mader Group (ASX: MAD) has closed out its first week of trade on the Australian bourse on a high note, having grown the value of the business by about $30 million.
Following completion of a $50 million initial public offering – the largest by a Western Australian company in four years – priced at $1 a share, Mader emerged on the Australian Securities Exchange with a valuation of $200 million.
By the close of trade on Friday, Mader shares had grown to $1.13 each and with a market capitalisation of $228 million.
Mader’s sizable IPO follows the likes of Wellard and Australian Finance Group, which raised $299 million and $122 million respectively in their initial offers before listing on the ASX in 2015.
As part of the IPO process, Mader founder Luke Mader sold down $38 million worth of his stake in Australia’s largest independent maintenance labour services provider for heavy mobile equipment which, combined with co-owner and prolific local mining entrepreneur Craig Burton’s sell down, equated to the relinquishing of 25 per cent ownership in the business to new investors.
The mining services company came from humble beginnings as a one-man operation in 2005. Today, it employs over 1,100 personnel across Australia and overseas.
In the last financial year, Mader generated about $15 million in net profit and $226 million in revenue.
Over the coming 12 months, Mader is targeting $19 million in net profit.
“Many years of investment by the Mader Group in its people and culture, scheduling systems, recruiting and retention systems, training systems and other business infrastructure lays the foundation for future organic growth and underpins its competitive advantages,” Mader chairman and industry veteran Jim Walker said in the company’s prospectus.
“Positive industry thematics support the future demand for the Mader Group’s services, including a trend for mining equipment to be used longer, the aging of mining equipment purchased during the last boom, and an economy-wide growth trend in labour outsourcing services.”
Cannings Purple is proud to be involved with the Mader IPO, having provided investor relations and design support to the company over the past year. We congratulate the company on its successful IPO and continued growth.