One of Australia’s oldest timber and building products companies has made a solid ASX debut after 14 months in the hands of private equity owners. Source: Yahoo 7 Finance
Big River, which manufactures and distributes construction timber across Australia, was bought by Anacacia Capital from its founders, the NSW based Pidcock family, in 2016 and entered listed life on Monday following a $17 million initial public offering.
Big River’s four-man board boasts former agribusiness Elders managing director Malcolm Jackman as an independent non-executive director.
The company ended its first day of trade more at $1.51, up 3.4% from its $1.46 issue price.
Big River manufactures and distributes building and construction products, including timber and steel products, timber flooring, plywood and related timber products across Australia.
The group owns two manufacturing facilities one in Wagga Wagga and one in Grafton in New South Wales.
Big River’s customers include major property developer LendLease, construction firm John Holland and furniture and electrical goods retailer Harvey Norman as well as smaller contractors.
The company’s prospectus said funds raised will provide the company with growth opportunities, including “greater flexibility” for its acquisition strategy and improved access to capital and debt.
Big River is expected to book a proforma net profit of about $6 million for 2016-17, up 1.3% from $5.9 million a year earlier, on revenue of $201 million, according to its prospectus.
Big River sold 11.6 million new shares via the IPO, which was fully underwritten by brokerage firm Taylor Collison.
