Myer, the Australian Retailer, Plans an I.P.O.
The large department store company Myer partly controlled by the American private equity firm Texas Pacific Group, is been planning to file for an initial public offering at the end of the month since the economy of Australia is coming back.
The news says that it will be 2.5 billion Australian dollars, or $2.2 billion if the offers succeed. It will most likely will be the TPG Capital, Blum Capital and the Myer family — the consortium that bought Myer in 2006 for 1.4 billion Australian dollars ($1.2 billion) from the troubled retailer Coles Group.
Even though their equity investment is less than expected which is merely about 500 million Australian dollars, which was more than recouped when they received a payout of 625 million Australian dollars in a real estate deal a little over a year after the buyout.
“It’s amazing the change they’ve made in the last three years,” said an analyst, speaking on condition of anonymity because of laws regulating Australian I.P.O.’s.
Myer reported Friday that net profit, at a 109 million Australian dollars, was up 14.8 percent for the year ending in July. “Our sales performance continued to improve quarter by quarter in FY ’09,” said Bernie Brookes, the chief executive of Myer, referring to the fiscal year.
Based on those trends, Myer has predicted sales growth of 3 percent for next year.