SYDNEY Oct 12 Australia's largest poultry
producer Inghams Group Ltd will list on the share market next
month with an equity value of up to A$1.5 billion ($1.1 billion)
and is on course to be the country's largest initial public
offering this year.
U.S. private equity giant TPG Capital Management LP
, will sell between 50 percent and 70 percent of the
firm in the IPO, at an indicative price range of A$3.57-A$4.14 a
The range values Ingham's at 13.5 to 15.5 times its pro
forma 2017 net profit, while the offer includes the sale of up
to 45.2 million new shares to raise up to A$172 million.
At the high end of guidance, the partial sale of existing
shares would fetch about A$950 million, after TPG bought the
firm in 2013 for about A$880 million. It would still retain a 27
percent stake in the company.
The listing would be a bright spot in what has been a
subdued market for Australian IPOs amid volatile equity markets.
TPG Capital also plans to sell energy company Alinta this
year, according to media reports.
Australia exports only a small percentage of chicken and
turkey each year, but Ingham's has seen strong growth in
domestic consumption, pushing the company to record profits this
Chicken consumption has grown 4.1 percent a year between
1990 and 2015, Ingham's said, primarily due to consumer
preferences for food seen as healthier.
The outlook for poultry in Australia has also been
strengthened by tightening supplies of beef after a drought in
the country's prime grazing region trimmed the size of the
national cattle herd to at least a 20-year low, stoking record
prices for the red meat.
Australia's strict biosecurity laws also make it difficult
to import poultry, leaving Ingham's in a strong position.
($1 = 1.3187 Australian dollars)
(Reporting by Colin Packham; Editing by Richard Pullin)