DataRoom AM: MYOB optimism

Bain Capital is on track to make a healthy profit if it goes ahead with the MYOB float, while QBE Insurance is considering listing its mortgage insurance division.

There has been talk that recent market volatility could jolt the booming IPO market, but nothing suggests such a circumstance is a major risk just yet, as a $2.5 billion float of MYOB moves forward alongside two potential billion-dollar offerings.

Elsewhere, the field starts to settle in the race for the Port of Melbourne, market and government eyes remain transfixed on the Medibank Private float and ASX-listed telco Amcom gets an offer from a mystery local suitor.

Bain Capital is close to moving full-steam ahead with an eagerly awaited float of its accounting software business MYOBpreparing to name Morgan Stanley and UBS as advisors. The $2.5 billion IPO could be the biggest of 2015, with current expectations that the firm will list in May. However, that relies on a strong offer not materialising from a trade buyer in the meantime.

The firm has proven a money printing machine for private equity with Bain set to double the $1.2bn purchase price from Archer Capital in 2011, while the latter made $750 million through that sale after taking MYOB private in 2009.

Meanwhile, QBE Insurance has tapped Goldman Sachs to advise on a planned float of its mortgage insurance division QBE LMI after seeing the successful IPO of rival Genworth Australia earlier this year. The deal, to be completed in 2015, is likely to be valued at about $1 billion, offering the troubled insurer a healthy cash boost.

Also in the IPO market, $1bn aged care business Estia is poised to hit ASX boards prior to Christmas after owner Quadrant Private Equity decided to push the planned float forward on the strength of trading in rival Japara Healthcare and Regis Aged Care.

Elsewhere, NZ-based Evolve Education is seeking to raise $NZ150m ($135m) through a dual-listing in New Zealand and Australia before the end of the year, while IPO candidate McGrath Real Estate Agents could pursue franchise buyouts before pushing the green light on a listing, The Australian Financial Review reports.

In infrastructure, Hastings Funds Management has added Global Infrastructure Partners to the consortium it will lead into the heated Port of Melbourne lease auction, according to the AFR. Hastings already had Kuwait’s Wren House Infrastructure in its corner, with GIP ensuring the consortium will have the kind of firepower needed to win the likely $5bn-plus bidding battle. The strongest competition is likely to come from a BorealisFuture Fund and QIC joint venture.

In telecommunications, Perth-based Amcom has called upon Lazard to advise on a takeover offer received at the end of last week. According to the AFR, the $500m, ASX-listed firm received a friendly proposal from a local rival on Friday, though the identity of the suitor is not yet known, with TPG TelecomVocus Communications and M2 Group seen as the most likely suitors.

Finally, the AFR reports the federal government will keep a close eye on retail brokers to make sure they aren’t offloading Medibank Private stock to institutional investors ahead of bids on Wednesday, while the NSW government’s auction of the Vales Point and Colongra power plans is set to be extended by a month until mid-December.

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