Burson debuts 12.6% higher

Group has emerged from private-equity ownership with a solid 12 per cent premium on debut.

Shares in Burson Group, the country’s largest automotive trade parts supplier, have shown a robust 12.6% jump on their ASX debut.

In early afternoon trade, the shares were at $2.05 and had touched a high of $2.07, compared with the issue price of $1.82 a share. Around 23m shares had changed hands.

Buyout firm Quadrant Private Equity, which bought Burson in 2011 for $148m, cut its stake in the group through the IPO to 19.9 per cent from 74.9 per cent.

In what is becoming an increasingly common IPO process, underwriters UBS and Morgan Stanley ran a cornerstone process for the bookbuild, securing commitments from fund managers before issuing a prospectus.

The bookbuild raised $220 million last month and met with strong demand from Asian-based investors.

Burson's IPO was priced at 9.4 times forecast 2015 earnings before interest, tax, depreciation and amortisation. Its customers include mechanics and retail chains such as Kmart Tyre and Auto, Ultra Tune and Midas.