Australia's PE-backed Barminco pulls IPO

Barminco initially sought to issue shares priced at A$2.02-$2.22 apiece, which valued the company at approximately 10x its 2011 forecasted earnings. According to reports, the sale's arrangers, Goldman Sachs and Gresham Advisory Partners, had initially hoped to see Barminco go for 12x earnings, and have opted to hold the listing in the hope of more favorable returns in the future.

The listing would have been Australia's largest of the year so far. It would also have been the first PE-backed IPO in the market since TPG-backed Myer Holdings in November 2009, which led to lackluster returns that spooked private equity firms. Likewise, outdoor sporting goods store Kathmandu Holdings, which was owned by Quadrant Private Equity and Goldman Sachs JB Were, has also performed sluggishly since its 2009 IPO.

While 2010 was expected to see a revival, continuing volatility has derailed plans by PEP-backed Hoyts, CHAMP-backed Study Group, and PEP-backed bookstore chain REDGroup, which is now in receivership.

However, last week Collins Foods, the Australian fast-food group owned by PEP, announced its intention to raise A$250 million ($263 million) through an IPO. Deutsche Bank and UBS have been appointed joint lead underwriters.

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• Topics
• Australasia
• Industrials
• Exits
• Gresham Private Equity