Mantra Group Limited (Mantra Group) has
announced a fully underwritten Initial Public Offering (IPO) at
$1.80 per share.
Mantra Group’s share market capitalization
at the IPO price will be $449 million which equates to an
enterprise value of $538 million. The shares offered through the IPO will
represent approximately 53% of the shares on issue upon listing.
The current shareholders, EV Hospitality and UBSAHPL, will retain
their current respective investments in Mantra and will enter into
voluntary escrow agreements. Certain
members of Mantra management will convert a majority portion of
their exiting share options into Mantra shares upon listing and
will similarly enter into voluntary escrow agreements.
The Offer comprises:
• A “Broker Firm Offer”, which is open to
Australian and New Zealand resident retail clients of Brokers, who
have received a firm allocation from their Broker and who are
Retail Offer Investors.
• An “Institutional Offer”, which consists of an
invitation to bid for shares made to Institutional Investors in
Australia, and a number of other eligible jurisdictions.
• A “Property Owner Offer”, which is open only
to eligible Property Owners who are Retail Offer Investors
nominated by Mantra Group.
• A “Priority Offer”, which is open to Eligible
Employees and certain other Retail Offer Investors nominated by
Mantra Group Chairman Peter Bush said the Board
was pleased to offer investors the opportunity to take part in the
future of a great Australian success story.
“Mantra Group is a leading Australian
accommodation operator, with 113 properties and over 11,600 rooms
in hotels, resorts and serviced apartments across Australasia and
Indonesia servicing over 2 million guests per annum,” Mr Bush
said. “Mantra Group’s properties are operated under three
strategically-targeted and differentiated accommodation brands -
Peppers, Mantra and BreakFree.”
Peppers, which has been operating as a
luxury brand for 30 years, is a collection of retreats, resorts
and hotels with a strong focus on high-quality food and wine.
Breakfree properties are positioned as quality but affordable
resorts and serviced apartments in both capital city and regional
“The segments of the Australian accommodation
industry to which Mantra Group is exposed through these three
brands have grown strongly at an average rate of 6% per annum
since 2004, and we believe that Mantra Group is well-positioned to
benefit from anticipated future growth because of its increasing
brand awareness, range of flexible operating structures and
scalable operations. We are confident this will provide investors
with a stable, resilient investment with opportunities for further
growth,” Mr Bush added.
Mantra has a strong financial track record and
attractive growth outlook. It operates a capital-light business
model and has maintained consistently strong cash-flow generation
over the past three years.
Mantra Group Chief Executive Bob East said, “We have worked hard to strengthen our
portfolio, invest in market-leading systems, and develop a
significant pipeline of growth opportunities in Australia, New
Zealand and Indonesia. The listing of Mantra Group will allow us
greater flexibility in delivering on that growth pipeline and I
look forward to welcoming fellow investors as part of this
The current timetable for the offer is as
Retail Offer opens: 10 June 2014
Retail Offer closes and Applications due: 17 June 2014
Expected commencement of trading on a conditional and deferred
settlement basis on ASX: 20 June 2014
Settlement: 24 June 2014
Trading commences on an unconditional and
deferred settlement basis on ASX: 25 June 2014
Expected despatch of holding statements: 26 June 2014
Expected commencement of trading on normal settlement basis on
ASX: 27 June 2014
Highbury Partnership Pty
Limited acts as exclusive Financial Adviser to Mantra Group. The
Offer is fully underwritten by the Joint Lead Managers, Macquarie
Capital (Australia) Ltd and UBS AG, Australian Branch.
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