Flowers grower and wholesaler Lynch Group is the first chunky float contender out of the gates and ready to test Australia’s initial public offering market.
The company’s sponsor brokers kicked off its pitch on Monday, sending detailed pre-deal marketing reports to fund managers seeking to explain Lynch Group, its industry and outline its financials.
Lynch Group CEO Hugh Toll will be out pitching his company’s float in coming weeks. Supplied
JPMorgan analysts Shaun Cousins and Shalin Doshi told clients Lynch was the largest vertically integrated supplier of consumer ready floral products to supermarkets with 88 per cent market share, and had 29 per cent shares of the floral wholesale market.
The analysts said Lynch Group expected to record $316.1 million revenue and $52.4 million EBITDA in the 2021 financial year, which would be up from $255.2 million and $30.4 million in FY20.
Lynch Group is majority owned by Australian private equity firm Next Capital. The company was founded by the family of Leo Lynch in 1915, and has been backed by Next Capital since 2015.
JPMorgan, Jarden and Citi are overseeing the IPO.
more to come
