Myer Holdings has lodged its prospectus for the initial public offer of its shares with the Australian Securities and Investments Commission (ASIC) ahead of Myer’s planned listing on the Australian Securities Exchange (ASX).
Myer’s 65 stores across Australia are forecast to generate total sales of $3.36 billion and proforma net profit after tax of $160 million in FY2010.
Over the past three years, more than $400 million has been invested in Myer to transform the business and establish a platform for future growth.
Myer chairman Howard McDonald shared his excitement about the future for this business and about inviting new shareholders to be part of that future.
“The dramatic transformation of the Myer business is a credit to all our team members and the proven management team led by Bernie Brookes. Bernie has recently committed to a further three year contract to lead the business into the next phase of its growth.
“As a board, we look forward to working with the management team as it continues to deliver on Myer’s strong, identifiable growth plans for the benefit of all shareholders,” he said.
Myer CEO Bernie Brookes believes the best years for Myer are still to come.
“While significant progress has been made in turning around the operational and financial performance of the business and establishing a sustainable platform for future growth, we believe Myer’s best is ahead of it,” he said.
“Building on our existing national store network, plans are well underway to open 15 new stores in the next five years with 12 agreements for lease already signed. The rebuild of our Melbourne flagship store to an international class standard, together with our continuing program of store refurbishments and enhancements, are expected to enhance our store portfolio and drive further growth in both margins and sales.
“In addition, we are yet to see the full benefits of our extensive transformation program and we are excited about the many opportunities to come, including the continued growth of our Myer one loyalty program, leveraging our supply chain and IT investment, and the roll-out of our new point-of-sale system, which is expected to contribute to a significantly improved customer service focus for the business.”
Brookes said that on average the Myer management team will retain 83.4 per cent of their shareholdings post the IPO, while he will retain 90 per cent of his shares.
“We are delighted to be able to offer our loyal Myer one customers and our team members an opportunity to participate in Myer’s future growth. As part of our continuing focus on engaging, rewarding and incentivising our team members, we are pleased to be offering $725 worth of free shares to almost 9000 of our team members.”
Under the offer, a total of 479.3 to 499.5 million shares will be issued or sold to new investors, representing in aggregate 84.9 to 85.4 per cent of the issued capital of Myer. Based on the indicative price range for the offer of $3.90 to $4.90 per share, the gross proceeds from the offer are expected to be in the range of $1.94 to $2.34 billion, and the market capitalisation of Myer will be $2.28 to $2.77 billion.