Cimic Group Ltd. on Monday said that an initial public offering of Ventia Services Group will comprise 30% of share capital and be priced at 1.70 Australian dollars (US$1.25) a share, valuing the infrastructure services business at roughly A$1.45 billion.
Cimic said the listing of Ventia–a joint venture between Cimic and Apollo Global Management LLC–on the Australian Securities Exchange and New Zealand Stock Exchange will provide it “with a public market platform to enable further growth.”
The offer, totaling A$438 million, will comprise 26% new shares and a 2% sell-down each by Cimic and Apollo, with the proceeds being used to improve Ventia’s capital structure and reduce its debt, Cimic said.
Cimic will retain a 32.8% stake in Ventia, it said. The IPO price notionally values that stake at roughly A$500 million, although Cimic said it will continue to hold the stake at its pre-IPO cost in its fiscal accounts.