Ex today's (Fri- 26 March 2010) AFR:
Street Talk
CAI’s $300m offering ready for take-off
PUBLISHED: 26 Mar 2010 01:07:52 PRINT EDITION: 26 Mar 2010
It’s not just the big investment banks reopening the market for initial public offerings. Just look at WilsonHTM and Commonwealth
Bank, the joint lead managers on the Contract Aviation Industries float.
The indicative range is between 10 times and 11 times fiscal year 2011 net profit, which gives a market capitalisation of about
$300 million. The investor roadshow winds up today and a fixed price will be decided on the weekend. The book-build starts on
Monday and the prospectus will be launched on Wednesday, March 31.
It’s interesting to note that CAI’s Alliance Airlines division just bought eight more Fokker-100 jets from a European vendor, due to
be delivered from May. The upside of this purchase has not been factored into forecasts.
The Australian Financial Review