PAS Group completes IPO and reaches 120 million value

The PAS Group, which owns brands including Review, Metalicus and Marco Polo, has completed an initial public offering that values the company at 120 million Australian dollars. The parent company of Australian fashion brands Metalicus and Review also owns Yarra Trail, Black Pepper and

Marco Polo brands.

The PAS Group will make its debut on the Australian Securities Exchange on June 18. According to data gathered by ‘Fairfax’, the initial public offering, which was managed by Morgan Stanley, priced the company at 8.9 times the group’s expected 2015 profits.

Through the initial public offering (IPO), the Melbourne-based sold 104.3 million shares at 1.15 Australian dollars each – 8.9 times its forecasted 2015 earnings. It has been reported that around a third of the shares were sold to individual investors, with the rest sold to fund managers.

Current owners including Propel Investments, Macquarie Private Equity and State Super will retain a 15 percent stake of the PAS Group following the listing.

PAS Group IPO values group at 9 times forecast FY15 profits

PAS group has increased its footprint from 18 stores in 2005 to over 220 stores across Australia and New Zealand.

The private equity-backed group was established in 2004 and now includes 27 brands. In addition to its more upscale brands, PAS Group also runs e-commerce operations and has grown a wholesale arm, which provides house-branded products to department and discount department stores.

Retail Doctor Group chief executive Brian Walker highlighted in an interview with ‘SmartCompany’ that the success of the PAS Group is “a good example of the retail market consolidating and rationalising”. “It’s getting more challenging for independent retailers unless they are super specialised, but here you have a group that acquires businesses and breaks up their branding really well,” added Walker.

It’s the latest chapter in the success story of the self-proclaimed “buy and build” company, which has grown from 18 retail outlets in 2005 to more than 220 across Australia and New Zealand and now employs more than 1220 employees.