Tutt Bryant attracted big interest with 1,343 shareholders investing in its IPO. Its shares opened at $1.17, well above the issue price of $1.00, and ended the day 23 cents, or 23% higher at $1.23.
An IPO is the sale of equity in a company, generally in the form of shares of common stock, through an investment-banking firm. These shares subsequently trade on a recognized stock market. Established companies, like Tat Hong Holdings Ltd, must demonstrate growth potential.
It was a significant move for the crawler crane rental company and early success on the ASE should fuel its public plans for expansion.
Tat Hong president Roland Ng was delighted with the successful listing of the company. He said: “As two separate listed entities we will have two engines powering our growth.”
Ng added: “Tutt Bryant can focus on the growing demand in Australia while Tat Hong expands within the Asia Pacific region. Tat Hong can also move forward with a stronger balance sheet, better liquidity and lower debt ratio.”
David Haynes, managing director of the Tutt Bryant Group, was forward thinking. He said: “We can now maintain a positive operating environment that rolls forward into 2006.”
And he has cause to be optimistic. The Tutt Bryant Group said it intends to use the net proceeds of around AUS$25million for securing the company’s future.
Around $10m will be used to repay loans to Tat Hong Holdings Ltd and other subsidiaries while the rest of the cash will be used for repayments of bank loans and offer costs.
Tutt said that it intends to maintain a dividend payout of 40% to 60% of net profit after tax in respect of each financial year following the year ending 31st March 2006.
Tutt Bryant’s origins can be traced back to 1938. Today, it operates three business divisions in crane rental, equipment sales and general equipment rental.
Tat Hong has operations in Malaysia, Hong Kong, Thailand, Indonesia, China, Japan, Vietnam and Australia.
