Moelis Australia Ltd., owner of pub and hotel operator Redcape Hotel Group, is preparing to run a roadshow for the IPO of the latter's shares on the Australian Stock Exchange, through which it aims to raise A$100 million, The Australian Financial Review reported.
Together with private brokerage house Ord Minnett, Moelis contacted funds with requests to book them into the roadshow, scheduled from Oct. 17 to Oct. 26.
Under the offering, shares of Redcape will be priced at A$1.13 per security, reflecting a A$615.2 million market capitalization and A$1.02 billion enterprise value.
The offer will also imply a 7.8% to 8% earnings yield, according to pro forma fiscal-year 2019 distributable earnings, the paper noted.
Redcape holds 32 hotels in the Australian states of New South Wales and Queensland, with freehold interest in 31 of the hotels, the Oct. 11 report added, citing a flyer sent to the potential investors.