Wotif.com has announced details of its much-anticipated listing on the Australian Stock Exchange, revealing that it will float 42% of the company, reaping a $160 million windfall for foundation investors, who will retain control with 58% of the company.
 
The money will largely be raised from major institutions paying up to A$2.00 a share, effectively locking out retail investors, until the shares start trading on the ASX in early June.
 
Founder and CEO Graeme Wood, who owns 35% of the accommodation website he started just six years ago, could reap A$140 million from the IPO.
 
He will receive A$42 million cash for selling down 10% of the company’s shares into the offer, while his retained 25% will be worth $102 million based on a A$2.00 issue price that will value the company at around A$400 million.
 
All proceeds after expenses will go the founding shareholders.
 
The prospectus – now available through www.wotif.com, reveals than Wotif.com is a very profitable company, operating with enviable margins.
 
The company is forecasting net profit after tax of A$15.7 million on revenues of A$45.3 million this financial year, and is expecting after tax profit of A$19.1 million next financial year on revenues of A$55.8 million.
 
“Wotif.com anticipates a fully franked final dividend of 1 cent per share for FY2006 and 8.4 cents per share for FY2007,” the company said in a statement.
 
Wotif.com, which has international expansion aspirations, claims to be the Australasian market leader in the online accommodation industry “processing approximately 36% of all online accommodation sales in Australia and 18% in New Zealand."
 
The joint lead managers for the offer are Macquarie Equity Capital Markets Limited and ABN AMRO Morgans Corporate Limited. These companies will make more than A$7 million from the float.
 
Ends.
 
 
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