Big River Industries lists on ASX
PREMIER Australian building and construction products company, Big River Group, of which local company Big River Timbers is a part, has formally announced its listing on the Australian Stock Exchange under the company's parent name, Big River Industries.
Following an application in March, the public sale was successful and stockbroker Taylor Collison closed off a fully subscribed set of new shareholders to the tune of $17 million, bringing the ASX debut forward a week from May 8 to May 1, 2017.
Existing shareholders retained all shares, and entered into voluntary escrow arrangements for various periods up until December 31, 2018 in support of the financial prospects of the company.
Big River Industries issued 11.6 million new shares, which comprise 22.1 per cent of the company's total. Sold at a price of $1.46 each, the firm has an indicative market capitalisation of $77 million.
The new capital will support Big River Group's expansion plans, including a selective acquisition strategy and new manufacturing initiatives.
Big River Industries managing director Jim Bindon said the apartment market was the only sub-sector likely to slow down in the next few years.
"Civil engineering and infrastructure projects, detached housing and commercial construction are all poised for solid growth," he explained. "The quarterly value of work completed by builders and construction firms has grown at a compound average rate of 4.8 per cent from mid-2001 to December 2016, and when there were tougher times in one part of the construction market, our experience is that it was generally offset by other segments."
The listing is the latest in a long line of recent successes. In 2016 the Group invested in a new steel roll forming line at its Wagga Wagga manufacturing facility, joining two established facilities in Grafton. Earlier this year the company acquired Adelaide Timber and Building Supplies in South Australia, and Sabdia Mitre 10 in Queensland.
"With an operating history of almost 100 years, Big River Group has established itself as one of Australia's leading manufacturers and distributors of timber and building products," Mr Bindson said.
"This ongoing achievement is a clear reflection of our longstanding presence in the marketplace, strong service culture and technical expertise."