Sedgman will release 40 million shares at $A1 per share in its initial public offering on May 15 and close the offer on June 6, with shares expected to begin trading on the Australian Stock Exchange on June 15.
The total number of shares on issue following the offer will be 170 million.
Sedgman chairman Russell Kempnich said the company had a record of success marked by compound average annual increases in earnings before interest and tax in excess of 25% over the three years to June 30, 2005.
“This performance is a reflection of the company’s reputation, strength of its management and the expansion of the Australian coal sector,” he said.
He said Sedgman expected to continue the track record of growth with EBIT forecast to double in financial year 2006 and rise by 25% in FY2007, driven by existing contracts, the forecast expansion of capacity through new coal mine developments in Australia, and refurbishment of existing infrastructure.
Kempnich said the company had a cooperation agreement with one of the largest construction, mining and service providers in the Asia-Pacific region, for the delivery of larger engineering services projects.
“Recent examples of the application of this agreement include the delivery of the Hail Creek CHPP Project No. 1 [project cost: $87 million] and the awarding of the Dawson Project [forecast cost: $442 million],” he said.
The initial offer of 40 million shares represents 23.5% of the issued shares of the company subsequent to the offer.
The existing shareholders, comprised primarily of Thiess and four of the company’s senior people, will hold the remaining shares.
The net proceeds of the offer received by the company will be available to fund the working and development capital requirements of Sedgman’s business development opportunities and repayment of liabilities.