The long heralded float of Count Wealth Accountants has received enormous support from its advisers with the preferential offer to members already oversubscribed.
Chairman Barry Lamberty says franchisees have been offered 62.5 per cent of the 100 million shares on offer through a priority plan and has already received applications for nearly 73 million shares from the advisers.
“The broker is also asking for any excess member’s shares for the public offer while those on offer through the chairman’s list have also been oversubscribed,” Lambert says.
The float is set to raise $40 million through the issue of 100 million shares at 40 cents each of which 20 million will be new shares created after a stock split earlier this year.
The remaining 80 million shares will be sold by the current shareholders, the Lambert family which currently holds 90 per cent while Geoffrey Guest holds 10 per cent of the group, representing a sell down of about 40 per cent.
As a result the members will hold about 28 per cent of the group while the current shareholders will hold 54.5 per cent or about 120 million shares.
After the float a total of 220 million shares will be on offer, valuing the group at $88 million.
Count’s advisers and employees are also being wooed with an option plan.
Under the plan, 20 million options will be offered to franchisees and five million to employees at the 40 cent price. However these can not be exercised for three years.
Count chairman Len Spencer says the company’s decision to keep a majority of shares with existing shareholders will keep the company independent from institutional product manufacturers.
Count expects to boost its earnings and profit over the current financial year, with a forecast net profit of $5.77 million for the year ended June 30, 2001 and earnings before interest and tax (EBIT) of $8.30 million. The group posted a net profit of $3.88 million for the 2000/1 financial year.
The offer is being underwritten by retail broker Dickson’s with a minimum investment of 10,000 shares, or $4000.
A priority offer is set to close on November 21 with the public offer closing on December 1 and the group set to list on the Australian Stock Exchange on 15th December.
