ACL Seeks $316 Million in Australia’s Biggest IPO So Far in 2021
(Bloomberg) -- Australian Clinical Labs Ltd., a private pathology business, is looking to raise A$408.6 million ($316 million) in what would be Australia’s biggest initial public offering this year.
The company has set the price at A$4 per share, valuing it at A$809.3 million, according to terms of the deal obtained by Bloomberg News. At this level, the offering will overtake flower and plant wholesaler Lynch Group Holdings Ltd.’s A$206.1 million IPO earlier this month, data compiled by Bloomberg show.
While paling in comparison with larger IPO markets like Hong Kong, Australian first-time share sales have had a better start to the year than in 2020, with $629 million raised compared to just $72 million last year. In fact, it’s the best start to the year for the country’s IPOs since 2014, when almost $700 million had been raised, the data show.
Australian Clinical Labs plans to use the proceeds from the IPO to pay selling shareholders for the acquisition of existing shares, repay existing debt and pay transaction costs, the terms show.
The company will start taking order from institutional investors on April 27 and begin trading on May 14. Bank of America Corp. and Goldman Sachs Group Inc. are joint lead managers for the offering.
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