Tuesday, 31 March 2015 17:20

MYOB going public to raise up to $834m Featured


Online accounting software company MYOB has at last confirmed what the market has been expecting for many months, announcing it will list on the Australian Stock Exchange with an IPO which it expects will raise between $831.7 and $833.8 million.

The shares will be priced at between $3 and $4 each, which would give MYOB a market capitalisation of between $2.3 and $2.6 billion.

MYOB lodged its prospectus today with the Australian Securities and Investments Commission (ASIC).

Rumours that MYOB would go public have circulated in the market for a long time, although CEO Tim Reed, announcing just a month ago a lift in revenues to $287 million for 2014 to the end of December, was dismissive, saying any changes in ownership would be flagged if that was the case, but noting that the company had strong cash reserves that could be used for investment.

MYOB is currently majority-owned by Bain Capital, with the company saying it will not sell any of its shares in the offer, at the completion of which it will hold approximately 57% of the total issued capital of the company - assuming that the final price is at the mid-point of the Indicative Price Range and that 50% of the existing retail notes are exchanged through the Noteholder Exchange Offer.

MYOB says the IPO is being conducted to raise capital to reduce some existing liabilities - including senior debt and mandatory redeemable preference shares – as well as to allow management shareholders to partially monetise their investment; and to provide MYOB with access to the capital markets to improve capital management flexibility.  

It’s also intended to provide a liquid market for shares and an opportunity for others to invest in MYOB.

Established in 1991, MYOB is Australia and New Zealand’s leading accounting software provider, and in a statement today Justin Milne, MYOB chairman, said the company is well positioned to carry out its growth strategy and continue to build on its leading position in small business and payroll software through the rapid growth of cloud solutions.

"The return of MYOB to the ASX after six years of private ownership represents a great opportunity for both shareholders and our clients.

“MYOB is a market leader within each segment it operates, and the company continues to innovate in its key markets of Australia and New Zealand.”  

Tim Reed said the IPO was a significant event for the company.

“The company has taken enormous strides in recent years under the ownership of Bain Capital.  We have made significant investment into R&D in the business to innovate and further drive our leadership through our range of cloud accounting solutions.

“We continued to capitalise on this strong base with rapid adoption from both new and existing clients, with 67% of new clients choosing cloud products and more than 116,000 paying subscribers using our cloud solutions as at 31 December 2014.”


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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).



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