Ironbridge-owned Eclipx gains on Australia debut after $195m IPO

Eclipx shares closed at A$2.78 on April 22 and had gained a further 2.5% as of early afternoon trading the following day, giving the company a market capitalization of more than A$680 million. A total of 110.1 million shares were sold in the IPO at A$2.30 apiece, according to a prospectus.

Ironbridge now holds 97.6 million shares in Eclipx - or a 40.6% stake - worth A$224.5 million based on the offering price. The private equity firm swapped its $84.3 million in promissory notes for shares in the company. GIC, however, has made a full exit, with Eclipx agreeing to repay its A$73.4 million in promissory notes on completion of the offering.

Eclipx is best known for the vehicle fleet leasing business FleetPartners and this was bought by Ironbridge and GIC, in conjunction with management, from Nikko Principal Investments in 2006. According to AVCJ Research, they took a 91% stake at a valuation of A$296 million, with Ironbridge contributing A$100 million for a 50% equity interest. Nikko had acquired it from ANZ two years earlier.

While FleetPartners purchases vehicles and leases them to customers, the other businesses that comprise Eclipx - primarily FleetPlus, CarLoans.com.au and Fleet Choice - act as brokers or agents, arranging vehicle financing from third-party financial institutions, from which it receives commissions. FleetPlus and CarLoans.com.au were both acquired in 2014.

In addition to facilitating an exit for GIC, the proceeds of the offer will be used to repay A$97 million of a previous debt facility. Eclipx has a new facility in place with a limit of A$150 million, of which A$100 million had been drawn.

The company has pro forma revenue of A$466.2 million for the 2014 financial year, down from A$481 million 2013. Net profit came to A$21.2 million, down from A$28.1 million. FleetPartners and FleetPlus accounted for 98% of revenue in 2014, accounting for a 10% share of all vehicles financed or under management in Australia and 21% in New Zealand.

A rival vehicle leasing and management business, CHAMP Ventures-backed SG Fleet, went public in March 2014, raising A$188.6 million through its IPO.

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• Topics
• Australasia
• Financing
• Exits
• Support services
• Australia
• Exit
• IPO
• Transportation
• Ironbridge Capital
• GIC Private