AGC plans ASX listing

SINGAPORE-listed resources services provider AusGroup is planning to create an Australian subsidiary to list on the ASX.
AGC plans ASX listing AGC plans ASX listing AGC plans ASX listing AGC plans ASX listing AGC plans ASX listing

AusGroup CEO Laurie Barlow

Kristie Batten

The company said the move was aimed at expanding its Australian operations, which are mainly in the mining and oil and gas sectors.

AusGroup will demerge its subsidiaries into a group headed by existing subsidiary AGC Australia and look for a suitable asset to allow a reverse takeover of AusGroup.

AusGroup will remain listed in Singapore, but AGC will seek a sole Australian listing.

The company first floated the idea more than a year ago and AusGroup chief executive officer and managing director Laurie Barlow said it made sense.

“It is the board's opinion that a sole listing of AGC on the ASX would provide better value to shareholders compared to a dual listing of AusGroup in Australia and Singapore, particularly as the ASX is the world's largest mining and resources exchange,” he said.

“AusGroup currently employs almost 3000 people and with approximately 84% of our people based in Australia and over 95% of our revenue generated in that country, listing on the ASX will help the company achieve its significant growth targets in the future.

“In particular, the ASX listing will help raise the company's profile within Australia and, as an Australian company, allow it to attract and retain staff, which is a critical factor in achieving future growth targets, expand its client base and improve its ability to tender for large projects.

“The company will also be in a better position to raise capital in Australia given the inherent familiarity of that exchange with resources services companies, which will help fund its organic growth and increase its leverage in pursuing growth acquisitions.”

AusGroup last month posted an 88% increase in full-year earnings to $23.3 million on revenue of $632 million.

This article first appeared in ILN's sister publication ConstructionIndustryNews.net.

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