tommy
31-05-2008, 12:43 AM
Burrup Holdings will be listed on ASX soon:
http://burrupholdings.com/
I am extremely interested in this float (although I generally hate IPOs) so would like other's opinions on this.
Prospectus:
http://burrupholdings.com/pdf/Burrup_IPO_190508_EMAIL_No_APPLICATION.pdf
____________
BURRUP HOLDINGS LAUNCHES $2.5 BILLION INITIAL PUBLIC OFFERING
Burrup Holdings Limited (ACN 097 138 353) (“Burrup Holdings”), which operates one of the world’s largest producing single train merchant ammonia∗ plants, today lodged its prospectus for an initial public offering (“IPO”) to list on the Australian Securities Exchange (“ASX”).
Burrup Holdings' Chairman and Managing Director, Mr Pankaj Oswal said that “the IPO will position Burrup to take advantage of its considerable growth opportunities and utilise its extensive skills in downstream industry to create further shareholder value.”
With FY09 production forecast to be greater than 800,000 tonnes, the plant on the Burrup Peninsula in Western Australia is the only merchant ammonia plant in Australia.
The offering is to certain employee, retail and institutional investors (“Offer”) and is expected to raise between $390 million and $502 million, based on the Indicative Price Range of $1.75 - $2.25. This will result in Burrup having a market capitalisation of between $1,952 – $2,510 million. The offer comprises a sell down of shares by existing shareholders, Pankaj Oswal as trustee for the Burrup Trust and Yara Australia Pty Ltd, as well as an issue of new shares by Burrup Holdings.
Burrup Holdings expects to pay out 85% of forecast net profit after tax as dividends. The expected fully franked dividend yield for 2009 is 7.4% - 5.8%, based on the Indicative Share Price Range.
Key offer statistics
Indicative Price Range $1.75 – $2.25
Number of Shares available under the Offer 223.1 million
Total proceeds from the Offer $390.4 – $502.0 million
Total number of Shares on issue after the Offer 1,115.5 million
Market capitalisation1 $1,952.1 – $2,509.9 million
Net debt2 $389.6 million
Enterprise value1 $2,341.7 – $2,899.5 million
Directors’ Forecast
FY2009 Forecast EBITDA $309.2 million
FY2009 Forecast Adjusted NPAT $187.5 million
FY2009 Forecast Adjusted EPS 16.8 cents
FY2009 DPS3 13.0 cents
FY2009 Forecast EBITDA multiple4 7.6× – 9.4×
FY2009 Forecast PE multiple5 10.4× – 13.4×
FY2009 Dividend Yield1,3 7.4% – 5.8%
Notes: Year ending 31 March.
1. Based on the Indicative Price Range.
2. Pro forma statement of financial position as at 31 March 2008 after deducting $21.2 million of operational cash flow, which has been used to
pay down the existing shareholder loans between March and the date of listing.
3. Based on Forecast NPAT
4. Based on Forecast EBITDA and enterprise value (pro forma net debt plus market capitalisation based on the Indicative Price Range).
5. Based on Forecast Adjusted NPAT and market capitalisation based on the Indicative Price Range.
∗ Merchant ammonia is consumed in the production of fertiliser products (71%) and technical sector applications
(29%)
BURRUP HOLDINGS LIMITED
Burrup accounts for c. 4% of the total world output of tradable ammonia and is the largest regional merchant ammonia producer, accounting for c. 30% of tradable ammonia in the Asia Pacific region.
Burrup Holdings’ scale, capacity and access to low cost gas feedstock make it one of the lowest cost exporters into the high growth Asia Pacific region.
Yara International, listed on the Oslo Stock Exchange with a market capitalisation of approximately US $23.3 billion and the largest trader of ammonia in the world, has a 20 year
Offtake and Marketing Support Agreement with Burrup to market, distribute and sell ammonia into domestic and international markets.
A long term working relationship between Burrup and Yara ensures that Burrup’s ammonia is sold at competitive prices, being based on transparent Middle East benchmarks with 100% of offtake sold throughout the pricing cycle. In 2005, Yara formalised this working relationship by taking a 30% stake in Burrup, providing further incentive to achieve high prices in selling Burrup’s ammonia.
Burrup is well positioned to capitalise on favourable global conditions for the sale of ammonia.
Recently, ammonia prices have traded above US$500/tonne. This strong price performance is expected to continue, as increasing population, declining arable land per person, income growth in developing countries, and potential demand for biofuel is expected to support strong fundamentals for the ammonia market.
“Burrup’s industry leading expertise give it the platform necessary to take advantage of favourable market dynamics and generate long term attractive returns for investors, ” Mr Oswal, said.
On 10 May 2008, Burrup Holdings entered into a Memorandum of Understanding with Yara to
evaluate the feasibility for the construction and operation of a 350,000tpa technical ammonium nitrate plant on the Burrup Peninsula. Technical ammonium nitrate is used to produce explosives and the plant’s production is anticipated to be absorbed by the growing Western Australian mining industry. If the parties agree to proceed with the plant, it is expected to be commissioned in FY11.
“Burrup’s close proximity to the mining sector in the north-west of Australia will position it to be a key player in the domestic ammonium nitrate market,” Mr Oswal said.
Burrup said the purpose of the Offer is to:
• achieve listing on ASX to broaden the shareholder base and provide a liquid market for shares in Burrup;
• provide existing shareholders with an opportunity to sell-down part of their initial investment;
• establish Burrup in a strong position, financially and operationally, to pursue growth
opportunities; and provide Burrup with ongoing access to capital markets.
The Retail Offer will open to Australian and New Zealand resident retail investors on Tuesday, 27 May 2008 and will close on Friday, 13 June 2008. The Priority Offer will also be available between these dates to employees and other persons deemed to be associated with the Company at the discretion of the Directors. The Institutional Offer will be conducted via a bookbuild which is scheduled to open on Monday, 16 June 2008 and close on Tuesday, 17 June 2008.
Following the IPO, Pankaj Oswal as trustee for the Burrup Trust will own 53%, Yara Australia Pty Ltd 27% and new shareholders through the IPO 20%.
UBS is acting as Sole Lead Manager and Bookrunner and Ernst & Young Transaction Advisory Services Limited is acting as Corporate Adviser on the IPO.
BURRUP HOLDINGS LIMITED
For media inquiries please contact
Nigel Kassulke, Cannings
Telephone: +61 2 9252 0622
Mobile: +61 407 904 874
E-mail: nkassulke@cannings.net.au
Wolfgang Jovanovic, Director Corporate &
Company Secretary, Burrup Holdings Limited
Telephone: +61 8 9327 8100
Mobile: +61 408 921 144
E-mail: wolfgang.jovanovic@bfpl.com.au
(Note: All dates and times are indicative only. The Company reserves the right, in consultation with the Lead Manager, to vary the dates and times of the Offer without prior notice. This may include closing the Offer early or accepting late Applications. Investors are encouraged to submit their Applications as soon as possible. Offers of shares in Burrup Holdings are being made under a prospectus which was lodged with the Australian Securities & Investments Commission on 19 May 2008. Anyone who wants to acquire shares in Burrup Holdings should consider the prospectus, and will need to complete the application form that is in or will accompany that prospectus. A copy of the prospectus can be obtained by contacting the company secretary of Burrup Holdings at the above address.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
http://burrupholdings.com/
I am extremely interested in this float (although I generally hate IPOs) so would like other's opinions on this.
Prospectus:
http://burrupholdings.com/pdf/Burrup_IPO_190508_EMAIL_No_APPLICATION.pdf
____________
BURRUP HOLDINGS LAUNCHES $2.5 BILLION INITIAL PUBLIC OFFERING
Burrup Holdings Limited (ACN 097 138 353) (“Burrup Holdings”), which operates one of the world’s largest producing single train merchant ammonia∗ plants, today lodged its prospectus for an initial public offering (“IPO”) to list on the Australian Securities Exchange (“ASX”).
Burrup Holdings' Chairman and Managing Director, Mr Pankaj Oswal said that “the IPO will position Burrup to take advantage of its considerable growth opportunities and utilise its extensive skills in downstream industry to create further shareholder value.”
With FY09 production forecast to be greater than 800,000 tonnes, the plant on the Burrup Peninsula in Western Australia is the only merchant ammonia plant in Australia.
The offering is to certain employee, retail and institutional investors (“Offer”) and is expected to raise between $390 million and $502 million, based on the Indicative Price Range of $1.75 - $2.25. This will result in Burrup having a market capitalisation of between $1,952 – $2,510 million. The offer comprises a sell down of shares by existing shareholders, Pankaj Oswal as trustee for the Burrup Trust and Yara Australia Pty Ltd, as well as an issue of new shares by Burrup Holdings.
Burrup Holdings expects to pay out 85% of forecast net profit after tax as dividends. The expected fully franked dividend yield for 2009 is 7.4% - 5.8%, based on the Indicative Share Price Range.
Key offer statistics
Indicative Price Range $1.75 – $2.25
Number of Shares available under the Offer 223.1 million
Total proceeds from the Offer $390.4 – $502.0 million
Total number of Shares on issue after the Offer 1,115.5 million
Market capitalisation1 $1,952.1 – $2,509.9 million
Net debt2 $389.6 million
Enterprise value1 $2,341.7 – $2,899.5 million
Directors’ Forecast
FY2009 Forecast EBITDA $309.2 million
FY2009 Forecast Adjusted NPAT $187.5 million
FY2009 Forecast Adjusted EPS 16.8 cents
FY2009 DPS3 13.0 cents
FY2009 Forecast EBITDA multiple4 7.6× – 9.4×
FY2009 Forecast PE multiple5 10.4× – 13.4×
FY2009 Dividend Yield1,3 7.4% – 5.8%
Notes: Year ending 31 March.
1. Based on the Indicative Price Range.
2. Pro forma statement of financial position as at 31 March 2008 after deducting $21.2 million of operational cash flow, which has been used to
pay down the existing shareholder loans between March and the date of listing.
3. Based on Forecast NPAT
4. Based on Forecast EBITDA and enterprise value (pro forma net debt plus market capitalisation based on the Indicative Price Range).
5. Based on Forecast Adjusted NPAT and market capitalisation based on the Indicative Price Range.
∗ Merchant ammonia is consumed in the production of fertiliser products (71%) and technical sector applications
(29%)
BURRUP HOLDINGS LIMITED
Burrup accounts for c. 4% of the total world output of tradable ammonia and is the largest regional merchant ammonia producer, accounting for c. 30% of tradable ammonia in the Asia Pacific region.
Burrup Holdings’ scale, capacity and access to low cost gas feedstock make it one of the lowest cost exporters into the high growth Asia Pacific region.
Yara International, listed on the Oslo Stock Exchange with a market capitalisation of approximately US $23.3 billion and the largest trader of ammonia in the world, has a 20 year
Offtake and Marketing Support Agreement with Burrup to market, distribute and sell ammonia into domestic and international markets.
A long term working relationship between Burrup and Yara ensures that Burrup’s ammonia is sold at competitive prices, being based on transparent Middle East benchmarks with 100% of offtake sold throughout the pricing cycle. In 2005, Yara formalised this working relationship by taking a 30% stake in Burrup, providing further incentive to achieve high prices in selling Burrup’s ammonia.
Burrup is well positioned to capitalise on favourable global conditions for the sale of ammonia.
Recently, ammonia prices have traded above US$500/tonne. This strong price performance is expected to continue, as increasing population, declining arable land per person, income growth in developing countries, and potential demand for biofuel is expected to support strong fundamentals for the ammonia market.
“Burrup’s industry leading expertise give it the platform necessary to take advantage of favourable market dynamics and generate long term attractive returns for investors, ” Mr Oswal, said.
On 10 May 2008, Burrup Holdings entered into a Memorandum of Understanding with Yara to
evaluate the feasibility for the construction and operation of a 350,000tpa technical ammonium nitrate plant on the Burrup Peninsula. Technical ammonium nitrate is used to produce explosives and the plant’s production is anticipated to be absorbed by the growing Western Australian mining industry. If the parties agree to proceed with the plant, it is expected to be commissioned in FY11.
“Burrup’s close proximity to the mining sector in the north-west of Australia will position it to be a key player in the domestic ammonium nitrate market,” Mr Oswal said.
Burrup said the purpose of the Offer is to:
• achieve listing on ASX to broaden the shareholder base and provide a liquid market for shares in Burrup;
• provide existing shareholders with an opportunity to sell-down part of their initial investment;
• establish Burrup in a strong position, financially and operationally, to pursue growth
opportunities; and provide Burrup with ongoing access to capital markets.
The Retail Offer will open to Australian and New Zealand resident retail investors on Tuesday, 27 May 2008 and will close on Friday, 13 June 2008. The Priority Offer will also be available between these dates to employees and other persons deemed to be associated with the Company at the discretion of the Directors. The Institutional Offer will be conducted via a bookbuild which is scheduled to open on Monday, 16 June 2008 and close on Tuesday, 17 June 2008.
Following the IPO, Pankaj Oswal as trustee for the Burrup Trust will own 53%, Yara Australia Pty Ltd 27% and new shareholders through the IPO 20%.
UBS is acting as Sole Lead Manager and Bookrunner and Ernst & Young Transaction Advisory Services Limited is acting as Corporate Adviser on the IPO.
BURRUP HOLDINGS LIMITED
For media inquiries please contact
Nigel Kassulke, Cannings
Telephone: +61 2 9252 0622
Mobile: +61 407 904 874
E-mail: nkassulke@cannings.net.au
Wolfgang Jovanovic, Director Corporate &
Company Secretary, Burrup Holdings Limited
Telephone: +61 8 9327 8100
Mobile: +61 408 921 144
E-mail: wolfgang.jovanovic@bfpl.com.au
(Note: All dates and times are indicative only. The Company reserves the right, in consultation with the Lead Manager, to vary the dates and times of the Offer without prior notice. This may include closing the Offer early or accepting late Applications. Investors are encouraged to submit their Applications as soon as possible. Offers of shares in Burrup Holdings are being made under a prospectus which was lodged with the Australian Securities & Investments Commission on 19 May 2008. Anyone who wants to acquire shares in Burrup Holdings should consider the prospectus, and will need to complete the application form that is in or will accompany that prospectus. A copy of the prospectus can be obtained by contacting the company secretary of Burrup Holdings at the above address.)
NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES