WELLARD Group managing director and major shareholder Mauro Balzarini looks set to be a rich-lister by the time BRW prepares its 2016 edition, provided he can convince fund managers to sign up to his cattle export business.
According to materials sent to potential investors on Monday, Balzarini's private company, Wellard Group Holdings Pty Ltd (WGH), will take an estimated $231.2 million off the table at Wellard's initial public offering or 63 per cent of funds raised.
WGH would also retain shares worth another $225 million, or a 36.8 per cent stake, subject to a lock-up for up to two years.
Balzarini and his related parties control 79 per cent of WGH, which would take their total to about $360 million.
While those numbers are estimates based on the mid-point of Wellard's IPO price range - and we will never know WGH's exact funding structure - it's fair to say Balzarini is looking at some big numbers following his 30-year service to the company.
Balzarini fronted fundies at UBS's Sydney office on Monday, where there was plenty of focus on the company's strong growth forecasts and capital expenditure.
Wellard sources livestock, mostly cattle, in markets like Australia and New Zealand and exports them globally. It also owns five livestock transport vessels, including one due for completion in 2016, a feed mill and meat processing facility.
The company expects $46.4 million proforma profit in the 2016 financial year on $607.4 million revenue. The IPO, which would see Wellard raise $333.6 million to $403.2 million, is priced at 12-to-14.5-times forecast profit as revealed by The Australian Financial Review's Street Talk Online on Monday.
The final price will be determined at a bookbuild set for November 19.
Up to 30 per cent of the IPO, or about $100 million, is expected to be allocated to new retail investors. The company has Morgans and CBA Equities on board to ensure retail investors hear about the 3.5 per cent to 4.2 per cent dividend yield on offer. CBA also backed Wellard via a new $50 million debt facility.
