SYDNEY— Australia’s biggest department store chain, Myer’s, is set to raise just over $2 billion in an initial public offering, although the offer’s final price came in on the lower end of its initial price range.
The retailer’s IPO price has been set at 4.10 Australian dollars a share, or $3.71 at current exchange rates. The shares are at the lower end of an indicative range of 3.90 to 4.90 Australian dollars, or $3.53 to $4.43 each. Investor confidence is said to have been rattled by recent weakness in global markets.
The share price values Myer’s stock at 15.1 times forecast 2010 earnings. Approximately 581 million shares will be sold.
NB Swanston, the TPG Capital and Blum Capital consortium, which, in conjunction with members of the founding Myer family, purchased the company for 1.4 billion Australian dollars, or $1.27 billion, in 2006, is selling its entire stake.
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Approximately 50 percent of the shares on issue will be held by retail investors, with the Myer management team retaining 7.7 percent and the Myer Family Company Pty Ltd approximately 1.5 percent of the issued equity upon listing.
Myer shares will commence trade on the Australian stock exchange on Monday.