Shares in department store Myer will be offered to the public on November 2nd the day before the running of the Melbourne Cup where Myer directors are set to celebrate a value which has been tipped to go as high as $3.18 Billion dollars.
The shares which are set to range between $3.90 and $4.90 are set to climb in value say analysts who got their prospectus today complete with a front cover picture of Jenifer Hawkins.
Myer’s private equity owners, TPG and Blum Capital, will offer 479.3 million to 499.5 million shares in the indicative price range.
Based on the shares on issue and valuations, Myer will be valued at 14.3 to 17.3 times 2010 full-year earnings. The company plans to pay shareholders a full-year dividend of 20.5 cents to 21.2 cents, fully franked. It will have pro-forma 2010 earnings per share of 27.3 cents to 28.3 cents.Once listed, Myer will have 564.8 million to 585 million shares on issue. Total proceeds raised from the offer by the vendors, which includes the Myer family, will be $1.94 billion to $2.34 billion.
Myer chairman Howard McDondald said “Plans are well underway to open 15 new stores in the next five years with 12 conditional agreements for lease already signed,” Mr McDonald said.
He added “Myer’s strong operating cashflows will fund its planned growth strategies as well as support a forecast fully franked FY2010 dividend yield of 4.3 per cent to 5.3 per cent, and beyond the forecast period a planned payout ratio of 70 per cent to 80 per cent of net profit after tax.”