Carbon Revolution's IPO spearheading a change in investment appetite www.sakipartners.com.au
Carbon Revolution - a high tech carbon fibre wheel manufacturer is making its debut on the ASX. Founded in 2004, this Geelong based smart manufacturing group makes the most technically advanced motor vehicle wheels in the world, from just a single piece of lightweight, immensely strong material.
Carbon Revolution wheels are 13 times strong and 40 percent lighter than aluminium and each wheel contains enough carbon fibres to circle the earth twice.
Carbon Revolution is seeking to raise $88.3 million to $90.6 million, consisting a $30 million primary raising and secondary selldown of $58.5 million to $60.6 million to pay existing shareholders.
The Joint Lead Managers are Bell Potter and Evans Dixon. The bookbuild is covered and is priced at a fixed price of $2.60 per share, representing a market capitalisation of approximately $331 million. New investors will account for 27.4 percent of the company once floated.
Market commentators are confirming the book-build is heavily oversubscribed with many potential investors being heavily scaled back.
Some commentators are noting a pronounced change in investor appetite with Carbon Revolution allowing investors a chance to gravitate away from more ethereal business models (such as SaaS, platforms and portals) to more tangible businesses such as Carbon Revolution's advanced manufacturing.
Existing shareholders behind the company include Alex Waislitz's Thorney Group who took part in the pre-IPO raise, Acorn Capital, global wheelmaker Ronal AG of Switzerland Deakin University and the federal Clean Energy Finance Corporation.
Despite seeing a number of recent IPO disappointments, Carbon Revolution is forging ahead with its plans and according to the term sheet, will list on 10 December 2019 on the ASX.
By Dr.Nigel Finch
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
About the author
Former fund manager and finance academic, Dr Nigel Finch advises growing business on strategy execution, corporate governance and capital raising. Nigel has worked across all stages of the business cycle from start-ups to seasoned ASX-listed companies including many who have tackled Asia’s emerging markets. Authoring more than 5 books and 100 scholarly articles, Dr Finch has a thing or two to say about business.
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Published Date:2019-11-04