Count Wealth Accountants is to raise $8 million as part of its long heralded float due to start on November 6, which will set the group with a market capitalization of $88 million.
Count Wealth Accountants is to raise $8 million as part of its long heralded float due to start on November 6, which will set the group with a market capitalization of $88 million.
According to the prospectus lodged with Australian Securities and Investment Commission (ASIC) on the October 25, 100 million shares will be on offer at 40 cents each.
Of the incoming $40 million dollars, $8 million will be derived from the sale of 20 million new shares and will go to the Count business. The incoming capital will be used to repay debts of $4.6 million and to fund expansion and acquisitions.
The remaining 80 million shares will be sold by three directors in the group, Barry Lambert, Kylie Lambert and Geoffrey Guest, generating the trio a windfall of $32 million collectively.
The prospectus states these directors are the sole current holders of shares with Barry Lambert currently holding 45 per cent, Kylie Lambert holding five per cent and Guest holding 10 per cent.
Each of these three will sell 40 per cent of their holdings and have indicated that they will not sell any further shares at this time resulting in a total of 220 million shares on issue.
The prospectus also includes an employee options plan and a franchisee option plan with a maximum of 20 million options for franchisees and 5 million option to employees.
Count Chairman Len Spencer says the company’s decision to keep a majority of shares with existing shareholders would 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.
Count posted a net profit of $3.88 million for the 2000/1 financial year and EBIT of $6.12 million.
The company has forecast a seven per cent fully franked dividend in 2001.
The offer is being underwritten by Dickson’s Ltd with a minimum investment of 10,000 shares, or a minimum subscription of $4000 with multiples of 1000 shares beyond that figure.
A priority offer is also open to certain franchisees within the group which will set aside 62.5 per cent of the offer, which is set to close on November 21.
The rest of shares will be available on public offer which closes on December 1 with the group set to list on the Australian Stock Exchange on 15th December.
