Quadrant-backed APN Outdoor sees shares jump 8% on debut

The stock eventually closed up 4% in a weaker overall market at A$2.65. APN raised A$329.3 million ($289 million) through its IPO, after pricing the offering at A$2.55 per share, the bottom end of the indicative range.

The company sold 129.1 million shares, of which 82.7 million was offloaded by Quadrant, reprsenting a partial exit. The Sydney-based GP realized proceeds of around A$210 million and saw its holding in APN fall from 93.7% to 20%.

APN was formed in 2004 through the merger of three major outdoor operators owned by APN News & Media. In 2012, the company's Australia and New Zealand assets were spun out into a joint venture between Quadrant and APN News & Media. The private equity firm paid A$174.2 million for a controlling stake, valuing the entire business at A$272 million.

Earlier this year Quadrant took full ownership APN, paying APN News & Media A$69 million for its remaining stake.

APN claims to have a 27% share of the Australian outdoor advertising market and 26% in New Zealand. It is one of four major operators, alongside JCDecaux, Adshel and oOh!Media. The latter is owned by CHAMP Private Equity. These four players account for about 80% of industry revenues in Australia, which came to A$544 million last year. New Zealand revenues were NZ$76 million.

As of December, APN's portfolio is expected to include: 34 large format digital billboards, around 2,800 static billboards, 33,300 advertising panels in buses and trams, 2,000 panels in trains and 1,000 panels in airports. The company is undergoing a general transition to digital solutions and expected to have 51 large format digital panels by the end of 2015.

APN posted revenues of A$225.9 million in 2013, up from A$207.8 million in 2012. It forecasts A$245.5 million in 2014. EBITDA has grown from A$27.8 million in 2012 to A$33.8 million last year and is expected to reach A$43.3 million in 2014. Forecast net profit for the year is A$20 million, up from A$14.3 million in 2013 and A$10.5 million in 2012.

Quadrant has made partial exits through two other IPOs in 2014 - media monitoring company iSentia raised A$283.6 million while Burson Auto Parts raised A$220.3 million. This followed a full exit via in-vitro fertilization specialist Virtus Health's A$338.7 million offering in 2013.

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• Topics
• Exits
• Australasia
• Media
• Exit
• Australia
• Media
• IPO
• Quadrant Private Equity