Peter Warren Automotive Holdings make blockbuster ASX debut; surges 19%

Summary

  • Peter Warren Automotive Holdings shares lists at 18.62% premium at AU$3.44 against its offer price of AU$2.90 per share.
  • The stock started trading on the ASX today at 12.30 pm AEST, under the ticker name “PWR”.
  • The automotive dealership group raised AU$260 million via IPO, at a market value of $459.6 million.

The shares of Australian automotive dealership group Peter Warren Automotive Holdings Limited (ASX:PWR) closed 19.31% higher at AU$3.46 on its debut day on Australian Securities Exchange (ASX).  

After successfully raising AU$260 million via initial public offer (IPO), the shares of car dealership group listed at AU$3.44, a 18.62% premium from its offer price of AU$2.90 per share. Post listing, the stock surged as much as 21.72% to AU$3.53, before settling at AU$3.460, up 19.31% on the ASX.

On the volume front, the scrip witnessed heavy buying as 5.37 million shares changed hands over the counter. The stock commenced trading on the ASX today at 12.30 pm AEST.

Meanwhile, the ASX 200 ended lower Tuesday, falling 11.80 points or 0.17% to 7,033.80.  The top losers were Nickel Mines (ASX: NIC) and Mesoblast Ltd (ASX: MSB), while Bingo Industries Ltd (ASX:BIN) and Unibail-Rodamco-Westfield (ASX:URW) were top gainers.

Commenting on stellar debut, Peter Warren CEO, Mark Weaver said that the company has a shown history of growth via both greenfield and brownfield developments which positions it well to be a consolidator in the fragmented automotive sector. He said that the company would continue to invest in new dealerships and to acquire strategic property sites.

"We have a proud and long history built upon the operational excellence and highest of customer standards established by the Warren and Frizelle families. The Company is ready for the next phase of the journey as a listed entity,” he added.

The listing follows a successful AU$260 million fully underwritten capital raise via IPO, at a market valuation of $459.6 million.

The IPO saw Warren family diluting stake to 35.1% from 36.6%, while private equity group Quadrant’s shareholding came down from 49% to 9.4%.

The 63-year-old company said the fund proceeds will provide capital flexibility to the firm for further opportunities and acquisitions in addition to strengthening its balance sheet.

Jarden Australia Pty Ltd, Jefferies (Australia) Pty Ltd and Morgan Stanley Australia Securities Limited acted as joint underwriters and lead joint managers to the IPO, while Gilbert + Tobin acted as legal adviser.

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