$2bn Spotless float leads bumper IPO build-up

Momentum for three of the year's largest floats builds ahead of Spotless, Medibank news.

Momentum is building for three of the largest floats expected to hit the boards this year as fund managers today receive ­research outlining further details for the initial public offering of the $2 billion catering services firm Spotless.

It comes as investment banks await to see this week whether they have been selected by government as joint lead managers for the $4bn float of health insurer Medibank Private, following pitches by all of the major firms in Canberra late last week.

Meanwhile, private equity owners of Healthscope are weighing offers for the $1.25bn property portfolio of the hospital provider before deciding how they will offload the overall business, which has an enterprise value of about $5bn.

Healthscope’s market value including its property assets is expected to be about $4bn, and it is expected an IPO of the company with or without the property assets is the most likely avenue for a divestment by owners TPG Capital and Carlyle Group. The prospectus for the Spotless float will be launched at month’s end, sources said.

Its private equity owner, ­Pacific Equity Partners, hopes it will coincide with contract wins for as much as $3bn of government services and resources sector work. Marketing of the float will be carried out over the next week, although appetite from investors has already been tested.

Research from investment banks puts the firm’s market value at between $2bn to $2.3bn; its enterprise value was put at between $2.7bn and $2.9bn.

Investment banks Citi, UBS and Deutsche were the joint lead managers for the IPO, which would involve vendor Pacific Equity Partners, raising about $1bn.

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