Bridget Carter & Gretchen Friemann, 30 July 2015

Advisers behind some of the largest floats for the second half of the year have been courting fund managers this week.

Estimates are that the market values of Viva Energy, Wisetech Global and Integral Diagnostics are likely to add up to almost $2 billion.

Viva Energy is shaping up to be a listed business with about $2bn worth of petrol station properties and a market value of about $750m.

The Morgan Stanley and ­Credit Suisse-advised company, which has at least 400 Coles-branded petrol stations, is being compared to the BWP Trust, which owns the Bunnings Warehouse properties.

It will effectively be a real estate trust with a 6 per cent yield and 3 per cent annual rental growth.

Viva’s owner, energy giant Vitol, is expected to retain between 30 per cent and 40 per cent of the business post-IPO, and Cohen and Steers, the Future Fund and other superannuation funds are thought to be among the likely investors.

Some believe that if the Morgan Stanley and Credit Suisse-­advised deal goes well, it could prompt Woolworths into embarking on a similar move for its petrol station portfolio.

Meanwhile, less clarity was offered this week on the potential market value of Wisetech Global at prospective investor meetings, although previous estimates are that it could be worth about $1bn. Vendors will sell down part of the company in its initial public offering, earmarked for the December quarter.

Sources say it is a high-quality business that has embarked on various acquisitions since the 2014 financial year when it secured $53m in annual revenue.

Extracted in full from The Australian.

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