29.11.2005

Tutt Bryant launches IPO

Tutt Bryant Crane hire, one of Australia’s largest crawler crane hirers, has launched the prospectus for the Initial Public Offering of its shares.

The company wants to raise A$25.87 (£11/$19)million through an equivalent issue of shares at A$1 (34p/59c), which will make up about 28 percent of the issued capital after listing. This will give it a market capitalisation of $92.68 (£40/$68)million if the offering is fully subscribed.

Its ultimate owner, Tat Hong, of Singapore, will retain 70 percent of the company’s equity. The net proceeds from the IPO are set to be used mainly for the repayment of debt to Tat Hong and bank lenders. Tutt Bryant is said to be seeking to capitalise on the successful float of rival Boom Logistics. The $430 (£184/$317)million company's share price has risen from an issue price. of 80 cents in October 2003 to $3 (£1.29/$2.2)last week.

Tutt Bryant crane hire is part of the Tutt Bryant group, a company within the Tat Hong group, Tutt Bryant equipment was merged in 2000 with Banbury engineering to create BT Equipment, the Sumitomo and Terex dealer in Australia. It operates a fleet of 90 cranes, including Hitachi Summitomo crawlers, Tadano Rough Terrains and a small fleet of mixed mobiles.

It was created as Tat Hong Rental in August 1997 and changed its name prior to the IPO in order to reflect the Australian nature of its business.

Tutt Bryant’s crane-hire business was the most profitable of its three divisions in the 2004 and 2005 financial years. Forecasts of A$12 (£5.1/$8.9)million EBITDA and net profit of $10.3 (£4.4/$7.6)million for the division in fiscal 2006 suggest this is likely to continue. The offer, which is being underwritten and managed by ABN Amro Morgan, closes on December second and the listing is expected to take place two weeks later on December 15.

Tat Hong is listed in both Singapore and Australia but is in the process of delisting from the Australian exchange. The flotation of a portion of Tutt-Bryant will therefore maintain some Australian investment within the group.

Tat Hong is one of the largest crawler crane hirers in the world with over 450 cranes in its fleet. It has both sold and rented cranes since 1993, when it became the exclusive distributor for Sumitomo cranes in Singapore, Malaysia, Brunei, Vietnam, Thailand and Hong Kong. In 1998 Taiwan and Australia was added for both cranes and excavators. More recently Vietnam has been added to its territory with Hitachi now also included.