Alfabs Australia Limited

Alfabs Australia Limited (ASX:AAL)

Offer Price

A$0.250

per share

Offer Size

A$18,000,000

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Alfabs Australia Limited

IPO

Alfabs Australia Limited (ASX:AAL)

AAL

Lead Manager

Offer Price

A$0.250

per share

Offer Size

A$18,000,000

IPO

Alfabs Australia Limited

Key Offer Details

Offer Price (Per Share)

A$0.250

Offer Size

A$18,000,000

Shares Available

72,000,000

Discount

5.70%

An Initial Public Offering of 72 million new fully paid ordinary shares at $0.25 per share. The Offer is being conducted to:

  • Fund hire fleet and related capex;

  • Fund bolt-on acquisitions; and

  • Working capital and costs of the Offer.

Offer Price: $0.25 per share

Total Proceeds from the Offer: $18.0 million

Number of Shares Offered to New Shareholders: 72,000,000 shares

Total Number of Shares on Issue Post-Offer: 286,840,003 shares

Market Capitalisation at the Offer Price: $71.7 million

Estimated Net Cash/(Debt) on Completion of the Offer: $8.9 million

Enterprise Value at the Offer Price: $62.8 million

Financial Metrics:

  • Enterprise Value/Pro Forma Forecast FY24 EBITDA: 3.5x
  • Enterprise Value/Pro Forma Forecast FY24 EBIT: 6.0x

Use of Funds

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Milestones

Over the past 38 years, Alfabs has achieved the following milestones, positioning it for continued future expansion:

  • Established a strong customer base: Alfabs has numerous national and international mine operators as well as government and private infrastructure clients as customers.

  • Coverage across Eastern seaboard: Alfabs’ operations include the Head Office in Kurri Kurri, Hunter Valley (NSW) along with branches/workshops in Wollongong (NSW) and Mackay (QLD) close to major coal mining basins.

  • Leading brand: Alfabs is highly regarded in the market by its customer base and potential customers, which assists in driving a high rate of quotation enquiries across the Mining and Engineering businesses.

  • Technical expertise: Alfabs employs a team of approximately 210 team members from labour assistants, tradesmen, operators, administration and experienced managers and professionals to effectively address complex client requirements.

  • Extensive production, manufacturing and warehousing: Both divisions have large workshops for projects and large scale warehousing for its assets and consumables.

  • Built an experienced Board of Directors: Along with Matthew Torrance and Mark Harrison, William Wavish (ex‐Woolworths CFO & Finance Director) has been added as Chairman and Robert Neale as Deputy Chairman (ex‐New Hope Corporation MD & CEO and ex‐Nickel Industries Chairman).

Mining Business Activities

The Mining division primarily sells to national and internationally owned black coal mines in Australia.

  • Equipment hire: Providing equipment hire to operators in the underground black coal mining industry in Australia.

  • Mining consumables: Supplying mining consumables and spare parts to mining operators.

  • Workshop capability: Providing repair, maintenance, overhaul and construction of underground mining equipment.

Engineering Business Activities

The Engineering division primarily sells to Tier 1 and Tier 2 contractors for public and private infrastructure projects.

  • Engineering Fabrication: Fabrication of heavy structural steel for public and private infrastructure projects in Australia.

  • Engineering Services: Site based installation and pre‐assembly works supporting the fabrication business unit.

  • Protective coatings: Provides abrasive blasting and protective coatings for clients and internal projects.

  • Forklift and Access: Hire of forklifts, elevated work platforms (EWPs) and materials handling equipment.

  • Logistics: Australia wide transport and logistics services.

  • Labour Hire: Provision of personnel for engineering and site‐based maintenance and upgrade projects.

Indicative Timetable

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Board & Management

William Walsh

William Walsh

Non-Executive Chairman

Bill was CFO and Finance Director at Woolworths. Under his leadership, Woolworths quintupled its profits, positioning the company among the top 10 of Fortune 500 companies worldwide for return on investment. With notable roles at Myer, and Campbells Soup Asia as well, he brings extensive experience and expertise to Alfabs. As Executive Chairman of Myer, he successfully led a profitable three‐year turnaround, resulting in significant financial gains. From his roles as the Chief Operations Manager at Industrial Equity Ltd to the CEO and Managing Director at Chase Corporation, Bill has consistently delivered exceptional financial results and successfully managed complex operations. Bill has made a significant impact in indigenous support through his role as the Founder and Patron of the National Indigenous Culinary Institute (NICI) and his involvement with the Clontarf Foundation.

Robert Neale

Robert Neale

Non-Executive Director

Rob is an accomplished business leader with extensive experience as a director and executive in the resources sector. As the former MD and CEO of New Hope Corporation, he has a proven track record in operational and development roles. Rob served as Chairman of Nickel Industries Ltd (2018 – 2023) and has served as Chairman and Non‐Executive Director for various organisations, inc. WestSide Corporation & Northern Energy Corporation as well as Director for Planet Gas and Bridgeport Energy. Rob was President of the Queensland Resources Council and Chairman of the Australian Coal Association Research Program.

Managing Director & CEO

Managing Director & CEO

Matthew Torrance

Matt’s career journey is marked by a series of significant milestones and achievements with over 30 years of experience as he continues the Torrance family legacy. Beginning his career as an apprentice boilermaker at Alfabs in the 80’s, Matt quickly progressed to roles such as Workshop Supervisor, Estimator, and Workshop & Site Manager. His leadership skills and expertise led him to the position of GM in 2000.

In 2010, Matt assumed the role of CEO. Throughout his career, Matt pioneered the establishment of Alfabs’ Mining and Protective Coatings divisions and the acquisition in 2015 of Minepro (NSW) Pty Ltd and LFP Mining in 2020.

Mark Harrison

Mark Harrison

Chief Financial Officer

Mark, a Chartered Accountant, possesses a versatile financial and commercial skillset gained through his experience within a prominent accounting firm and various private entities. Additionally, he has gained valuable experience in both commercial and operational roles within the heavy transport and logistics industry. Mark has previously served as a director on not‐for‐profit boards in the Newcastle region and Hunter Valley. Mark holds a Bachelor’s degree in Commerce.

Disclaimer

Blue Ocean Equities Pty Limited and Bell Potter Securities Limited have acted as Joint Lead Manager to the Offer. Blue Ocean Equities Pty Limited and Bell Potter Securities Limited have not authorised, permitted or caused the issue or lodgement, submission, despatch or provision of this Prospectus and there is no statement in this Prospectus which is based on any statement made by it or by any of its affiliates, officers or employees. To the maximum extent permitted by law, Blue Ocean Equities Pty Limited and Bell Potter Securities Limited and each of their affiliates, officers, employees and advisers expressly disclaim all liabilities in respect of, and make no representations regarding, and take no responsibility for, any part of this Prospectus other than references to its name and make no representation or warranty as to the currency, accuracy, reliability or completeness of this Prospectus.

Alfabs Australia Limited

IPO

Alfabs Australia Limited (ASX:AAL)

AAL

Offer Price

A$0.250

per share

Offer Size

A$18,000,000

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