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Thread: Vulcan steel

  1. #1
    Speedy Az winner69's Avatar
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    Default Vulcan steel

    IPO coming in a few weeks

    Listing on ASX and NZX

    Raising $400m to start with

    Valued at about 13 times earnings or 9 times EBITDA so looks reasonably attractive


    https://businessdesk.co.nz/article/m...l-titan-vulcan
    Maybe paywalled
    Last edited by winner69; 18-10-2021 at 07:14 AM.
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  2. #2
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    There is also an article on NBR.co.nz with a good interview with Peter Wells.
    While the EBITDA multiples are higher than you would find at comparables like STU, vulcan's margins are dramatically higher and has lower capital intensity which translates into better cashflow and dividend payout. Plus its a bloody good business - the best in its industry in australasia - so some premium warranted. I hope it goes well. I don't have any allocation but will look to buy some on the aftermarket if I can get it near to issue price. Nice to have something new to watch & invest in. I see this as a good super long term investment for my own portfolio. Not advice DYOR.

  3. #3
    Legend Balance's Avatar
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    Quote Originally Posted by winner69 View Post
    IPO coming in a few weeks

    Listing on ASX and NZX

    Raising $400m to start with

    Valued at about 13 times earnings or 9 times EBITDA so looks reasonably attractive


    https://businessdesk.co.nz/article/m...l-titan-vulcan
    Maybe paywalled
    Forbar as NZ’s co IPO manager - does Vulcan actually know what it is doing inviting in the kiss of death broker?

    MFB, CBL, Wynyard, Intueri, Orion etc etc

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    Quote Originally Posted by Balance View Post
    Forbar as NZ’s co IPO manager - does Vulcan actually know what it is doing inviting in the kiss of death broker?

    MFB, CBL, Wynyard, Intueri, Orion etc etc
    hahaha - I hear ya. Anytime forbar are mentioned in a float I immediately wonder why the company had to go with a second rate broker. But I'd say Jarden are top tier and they have had some woeful floats too so who knows. Brent Sheather writes some great articles on the NBR about IPO performance interesting reading and enough to put you off investing in initial offerings.

    Here they are a 2 bit player on the wings and not leading the charge - that is done by the aussie JLMs.

    Vulcan has a lot of substance and is a grunty company with long term history and exceptional management - particularly relative to the list you have above. Question as always is if the valuation is too rich.

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    Legend Balance's Avatar
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    Quote Originally Posted by Fiordland Moose View Post
    hahaha - I hear ya. Anytime forbar are mentioned in a float I immediately wonder why the company had to go with a second rate broker. But I'd say Jarden are top tier and they have had some woeful floats too so who knows. Brent Sheather writes some great articles on the NBR about IPO performance interesting reading and enough to put you off investing in initial offerings.

    Here they are a 2 bit player on the wings and not leading the charge - that is done by the aussie JLMs.

    Vulcan has a lot of substance and is a grunty company with long term history and exceptional management - particularly relative to the list you have above. Question as always is if the valuation is too rich.
    Jarden is not involved in this IPO from what I can read?

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    Quote Originally Posted by Balance View Post
    Jarden is not involved in this IPO from what I can read?
    no they aren't - I was just saying the quality of a float isn't necessarily determined by the quality of its broker (and went on to reference jarden as a great investment bank that has led some poor floats). apols for any confusion

  7. #7
    Reincarnated Panthera Snow Leopard's Avatar
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    Listing day -- not sure whether they have a steel band to play them in and a buffet lunch after but I expect the action will be on the ASX and once the initial few days are over the SP will not be trending up for the first few months.

    Disc: do not hold
    om mani peme hum

  8. #8
    percy
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    Some interesting comments at www.chrislee.co.nz taking stock

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    Thanks Percy. Some people/books suggest not participating in the IPO. It seems that most of NZX IPOs 2021 are going under their IPO prices (DGC is an exception).

  10. #10
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    I used to work with Rhys Jones almost 30 years ago when he was an up & coming manager at Fletcher Steel. He was a sharp cookie back then & also was a straight shooter. All good attributes to take a company like this forward. I assume he just received a substantial pay day! Good for him.
    Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.

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