PAS Group, the fashion retailer and wholesaler with brands including Sista, Review and FredBare, has raised $120 million in an initial public offering to repay debt.
In a book build that concluded on Wednesday 21st May, the Melbourne-based company sold 104.3 million shares at $1.15 each or 8.9 times forecast 2015 earnings. About one-third of the shares were sold to individual investors and the rest was sold to fund managers.
Current owners Propel Investments, Macquarie Private Equity and State Super will retain a stake of 15 per cent of PAS Group post listing.
Morgan Stanley is the lead manager of the IPO. Investec in conjunction with Reunion Capital Partners were the advisers to PAS Group.
PAS Group shares will have 8.5 per cent dividend yield and there are about $44m of spare franking credits sitting on PAS Group’s balance sheet for future distribution, according to a source.
PAS Group has grown from 18 stores in 2005 to about 220 stores in Australia and New Zealand. It plans to have 340 outlets by 2017. It also sells under various brand names through department stores including Myer, David Jones, Kmart and Target.
A prospectus will be lodged on Friday 23rd May and the shares are scheduled to begin trading on the ASX on June 18.