Matrix Composites and Engineering Share Float

Fifteen million shares in Matrix Composites & Engineering Limited are being offered to the public at a price of $1.00 per share. The offer is due to close on November 6 with shares expected to begin trading on the Australian Stock Exchange on November 17.

Matrix is a Western Australian based company. It manufactures and supplies engineering equipment to the oil and gas, mining and mineral processing industries among others. The company will have 64 million shares issued after the IPO giving a market capitalisation of $64 million at the issue price of $1.00.

The proceeds of the offer are to be ploughed into the expansion of the business. This is in contrast to the Myer and Kathmandu floats in which the current owners are selling out.

Kathmandu Float Will Proceed

Well the rumors are true – the Kathmandu float is on.  Shares in the retailer are set to list on both the Australian Stock Exchange and the New Zealand Stock Exchange before Christmas.

The company is seeking to raise up to 375 million dollars through the sale of up to nearly 200 million shares at between $1.65 and $1.90 (Australian dollars that is) per share.  The proceeds will go to the current owners who are selling down their holding and also to pay down debt.

For those unfamiliar with Kathmandu’s operations, it operates a chain of stores selling outdoor goods and clothing.  It was established 1987 and has since grown to have a total of 91 stores across Australia, New Zealand and the UK.

The Kathmandu share offer opens on October 27th and closes on November 6th.  Shares are expected to begin trading on a deferred settlement basis on November 13th.

Winchester Resources Limited Share Offer

Winchester resources is seeking to raise $2 million through the issue of 10 million shares at 20 cents each.  The offer opened on 7 October and is expected to close on 6 November.

The company has entered into an agreement to acquire the Ora Banda Project near Kalgoorlie.  They are hoping to

“define mineralization on the Tenements and identify, review and secure other potential mineral resource projects”

From what I understand their exploration efforts will be directed towards finding gold and nickel.  It should be noted that this is a speculative proposition as the future value of any investment will depend on their success in finding any viable mineral deposits.

Winchester Resources Limited is expected to list under the code WCR and begin trading on the ASX on 17 November 2009.  The prospectus is available at www.winchesterresources.com.au.

Myer Float To Go Ahead

Shares in Myer are set to be offered to the public again after an absence for the Australian Stock Exchange of over 3 years.

The private equity consortium which took the retailer private is looking to realize its investment. This is after considerable restructuring and asset sales.

Unfortunately, I don’t have any of the specifics of the deal yet, however word is that a prospectus is due to be lodged with ASIC at the end of September. I don’t know any of the pricing details, the amount to be raised or how the shares will be allocated. However, loyalty card holders and staff members can apparently preregister their interest in the Myer float in order to be sent out a copy of the prospectus when available.

With the recent strength of the Australian stock market, I’m sure Myer’s current owners will be very keen to get the sale out of the way as soon as possible. The last thing they’ll want is for the market to tank now…

What Is Aussie Floats?

This being the first post and all, I thought I’d take this opportunity to share some of the plans I have for this blog. First and foremost this blog is dedicated to the Australian Stock Market and in particular all of the new companies which are floating on the Australian Stock Exchange.

But What Is A Float?

In case you’re new to this game, or maybe you’re not a local, I should explain what a float is. It’s what the Americans call an IPO or Initial Public Offering. This is when a company or corporation lists on the stock exchange. It gives the public a change to buy and sell shares in the company and gives the company the opportunity to raise new capital to grow it’s business (or maybe to re-furnish the executive washroom).

So as I find out about new companies getting ready to float, I’ll write about them here. I’ll provide some of the details of the impending listing along with some of my thoughts about the business. I won’t be providing buy recommendations. I don’t want that responsibility. I’d rather just generate some discussion about some of these new companies and hopefully learn a thing or two in the process.

I should also stress that I’m not an investment professional. Although I am a keen investor, I’m not qualified to give investment advice. Just because I write about these companies, it doesn’t mean I’m recommending them. In fact in my experience, many new listings aren’t worth the effort. So make sure you get some independant professional advice before you make any investments.