SYDNEY Aug 12 Shares in Hong Kong satellite
services firm Speedcast International Ltd were flat in
their first day of trade on the Australian stock exchange after
the company raised A$150 million in an initial public offering.
The company, which derives about a third of its revenue from
Australian customers, sells satellite services to people in
remote locations. It says it has 1,000 customers in 3,000 land
sites, mainly in Asia Pacific, and 1,700 offshore rigs and
It shares were trading at A$1.96, the same as their issue
price, giving the company a market value of A$235.5 million
Some 64 percent of the company was sold in the IPO, with
rest held by its directors and Boston-based private equity owner
TA Associates. Funds raised will go towards paying down debt and
to fund acquisitions. Speedcast has made five acquisitions since
being bought by private equity in 2012.
Australia is headed for its biggest year of new listings in
a quarter century with $7.9 billion raised from the start of
2014 to Aug. 5, according to Thomson Reuters data, more than
three times the same period last year.
Speedcast expects to post an annual net loss of $5.5
million, compared with net profit of $3.6 million the previous
year, as Australian troops, for whom it provided services,
withdraw from Afghanistan.
Excluding Afghanistan-related earnings, the company said it
expects annual net income to nearly double to $6.1 million.
(1 US dollar = 1.0793 Australian dollar)
(Reporting by Byron Kaye; Editing by Edwina Gibbs)