Geminder eyes $650m IPO with Pact selldown

The packaging firm's IPO is expected to be the largest this year.

Melbourne billionaire Raphael Geminder is expected to raise at least $650 million if he proceeds with the selldown of his interest in packaging firm Pact Group through a stockmarket float, making it the biggest IPO of the year.

It is understood the final pricing of any possible Pact offer would not be decided upon until a management roadshow over the next fortnight, which would include tours of the company's Sydney and Melbourne facilities next Wednesday and Thursday.

The roadshow will then proceed to Asia, Europe and the US.

But brokers Credit Suisse and Macquarie Capital have resolved with Mr Geminder that the offer will raise at least $650m, which will be used to pay down debt and enable Pact to expand globally.

It would make the Pact float larger than the Nine Entertainment IPO, which will raise about $600m.

The Australian reported last week that Mr Geminder wants to transform Pact into a $5 billion enterprise over the next five years, with operations in Asia, Europe and the US, and will retain a stake of up to 40 per cent in the business if the float proceeds.

If the Pact board, which includes independent non-executive directors Peter Margin, Lyndsey Cattermole and Tony Hodgson, decides to proceed with the IPO it is likely a prospectus will not be issued until early next month.

Pact, which has a 40 per cent market share in Australia, supplies a wide range of plastic and steel packaging to the food, household cleaning, pharmaceutical, personal care and industrial markets.

It owns brands including VIP Packaging, Plaspak and Salient Asia Pacific.

It is the largest supplier to the dairy industry in New Zealand and major supplier to key Australian dairy producers such as takeover target Warrnambool Cheese & Butter, Lion and Murray Goulburn.

Pact's current sole shareholder is Pact Group Holdings, which, in turn, is owned by Mr Geminder's Geminder Holdings. His wife Fiona also has a one-third stake in the Pratt family's Visy Group packaging empire.

During the roadshow Mr Geminder and his team are expected to promote Pact as one of the few IPOs this year from a well-established business. They will argue that others are coming from private equity exits or entrepreneurs with new businesses, while Pact has a decade-long track record of delivering on-budget targets and growing revenues.