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Nimble
22-04-2004, 12:42 AM
Has anyone taken a look at the Just Group IPO? (Couldn't find any comments using the search function)

Just Group is offering 203.8 million shares at a maximum retail price of $A2.60 ($NZ2.99) per share under its initial public offer. The institutional offer indicative price range is $A2.25 to $A2.70 per share. The company's market capitalisation is expected to be between $A491 million to $A589 million.
Of the company's 218 million shares on issue, 203.8 million will be offered. The retail offer opens on April 5 and closes on April 30 while the institutional offer and institutional bookbuild opens on May 4 and closes on May 5. The group expects to list on the Australian Stock Exchange on May 7.

The company has a;
- diversified and balanced portfolio of highly visible and well known brands, he said. Labels such as Just Jeans, Jay Jays, Portmans, Jacqui E, Peter Alexander and street fashion concept stores representing labels including Levis and Mooks. The company said each of these brands operates within its own market segment with a clearly defined customer demographic.
- It has 676 stores and is one of the largest specialty retailers in the Australian and New Zealand markets with 102 stores in New Zealand

"The reshaping of and investment in the business has delivered strong financial performance," McDonald said. "We are pleased with our financial track record and are excited by the opportunities we continue to identify to improve the performance and grow the business. "In particular we expect to see continued strong growth in both the Jay Jays and Portmans businesses," he said. He said earnings before interest, tax and amortisation (Ebita) is expected to grow at a compound annual 21.8% from 2003 to 2005, driven by sales and gross margin improvements, and through reductions in key operating costs as a percentage of sales.
Joint-lead managers to the offer are Citigroup and Goldman Sachs JBWere. The financial adviser to Just Group is UBS

Stats:
NPAT pre goodwill amortisation 04 38.1, 05 45.2
PE of 12.5 based on retail price of 260.
Forecast Yield for 05 is 5.2%, payout ratio 65%, DPS 13.5
P/S 2.56

Comments
management will still own 6.5% which is good but down from the 13% currently owned
management considered competent
PE of 12.5 attractive for company growing at 20%
yield good at 5.2%

pajama
22-04-2004, 07:39 AM
a word of caution nimble - just jeans was a listed company a couple of years ago. i held some until they were effectively privatised by way of LBO by management and equity backers. i do not have the financial data in front of me from those days but the market cap was nothing like what is being talked of now. it was a good coy and probably still is but the price being asked is a substantial increase. as always one must undertake their own analysis but i would be cautious with respect to the concept that owners have added several hundred million to value in a couple of years. things may have changed but care is always required with these 'new' floats in my experience.

willy_wonker
22-04-2004, 09:35 AM
After Pacific Brands PBG BAD IPO listing, I am not going near Just Jeans. :([xx(]


disc: holds PBG

Nimble
22-04-2004, 10:04 AM
Pajama,
Thanks for your comments, I see what you mean. In 2001 management buyout was for A$1.08/share and A$108 million. Versus 2004 maximum retail price of A$2.60 and market cap of A$567. Thats 140% appreciation for the shares and 425% for Market cap. However not sure if share price is comparable as number of shares could have changed. Most of this growth appears to come from store growth. During this time the number of stores have grown from 150 to 676 stores, which includes 3 acquisitions the largest being Portmans. EBITA margin has also increased 74% using 04 forecast
Might do a few more comparisons with other recent listings like Repco and Pacific Brands and say other listed retailers. Cheers

i_claudius
06-05-2004, 09:29 AM
Final price set at $2.10...short of the original indicative range and well short of the $2.60 retail price paid in by retail investors on ipo application.
P/E of 10.Looks pretty good given RBA left rates alone and tax cuts to come.Retail might get a nice run over next few months.
Methinks lead managers put it on vendors to lowball offer price and ensure healthy debut for this one.

tracker
10-05-2004, 09:11 PM
well that was a good float NOT.opened at lke 197 and has gone south ever since.Reached 187 this morn (it is not shortable yet, I think due to the DD basis that it is quoted.A bit of a bounce, we might even see it go green soon
trade well
tracker

tracker
10-05-2004, 09:13 PM
just a thought given that it is DD, might give a decent trade, given that you dont have to pay for it, anybody know how long the DD is for
trade well
tracker

tracker
11-05-2004, 05:42 PM
well nice trading today,anybody play???
trade well
tracker

tracker
13-05-2004, 09:34 AM
well has done very well, and considering you dont have to pay for them , even better lol
trade well
tracker

tracker
13-05-2004, 11:40 AM
announcement this morn converted to fpo, damn party over??
trade well
tracker

tracker
13-05-2004, 06:21 PM
nice short tho 93 down to 98 not too shabby
trade well
tracker