Jim Bindon
Australian building and construction products company, Big River Group, has formally announced its listing on the ASX under the company’s parent name, Big River Industries. Source: Timberbiz
Following an application in March, the public sale was successful and stockbroker Taylor Collison closed off a fully subscribed set of new shareholders to the tune of $17 million, bringing the ASX debut forward a week from 8 May to 1 May 2017.
Existing shareholders retained all shares, and entered into voluntary escrow arrangements for various periods up until 31 December 2018 in support of the financial prospects of the company.
Big River Industries issued 11.6 million new shares, which comprise 22.1% of the company’s total. Sold at a price of $1.46 each, the firm has an indicative market capitalisation of $77 million.
The new capital will support Big River Group’s expansion plans, including a selective acquisition strategy and new manufacturing initiatives.
Jim Bindon, Managing Director of Big River Industries, said the apartment market was the only sub-sector likely to slow down in the next few years.
“Civil engineering and infrastructure projects, detached housing and commercial construction are all poised for solid growth,” he said.
“The quarterly value of work completed by builders and construction firms has grown at a compound average rate of 4.8% from mid-2001 to December 2016, and when there were tougher times in one part of the construction market, our experience is that it was generally offset by other segments.”
The listing is the latest in a long line of recent successes. In 2016, the Group invested in a new steel roll forming line at its Wagga Wagga manufacturing facility, joining two established facilities in Grafton.
Earlier this year the company acquired Adelaide Timber and Building Supplies in South Australia, and Sabdia Mitre 10 in Queensland.
“With an operating history of almost 100 years, Big River Group has established itself as one of Australia’s leading manufacturers and distributors of timber and building products,” says Bindon. “This ongoing achievement is a clear reflection of our longstanding presence in the marketplace, strong service culture and technical expertise.”
