Wilsons kicks off $240m DRA Global float

AFR Online, Sarah Thompson, Anthony Macdonald and Tim Boyd, Monday, 31 May 2021, 08:48 GMT, Copyright 2021. Fairfax Media Management Pty Limited.

Mining sector engineering and project management group DRA Global is in front of equities investors with a $20 million initial public offering valuing it at $241.8 million on a market capitalisation basis.

DRA Global and its stockbroker, Wilsons, was offering shares at $3.95 each in a deal valuing the company at 6.2-times forecast 2021 net profit after tax and amortisation and 1.9-times EBITA.

Funds raised were to repay some selling shareholders, pay for the IPO offer costs and to prop up the group's working capital.

DRA Global lobbed a prospectus with the corporate regulator on Friday and was due to start selling shares next week. If successful, its shares would begin trading in Australia and South Africa on in July.

It told potential investors a listing would give it better access to capital markets and funding, which could be handy if it were to win a big new contract.

In its prospectus, DRA Global said it employed more than 4500 people across 20 offices. The group expects $1.24 billion revenue and $72.6 million EBITDA in the 2021 calendar year.

DRA Global said it made about half of its revenue overseeing mining sector expansion projects, while the other half came from maintenance and operating expenditure budgets.

Wilsons was named as lead manager and underwriter, while Azure Capital is Australian corporate adviser and Pallidus Capital is South African adviser and JSE sponsor. Herbert Smith Freehills is doing the legal work.

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