Veda attracts strong early orders

The book build is set to close this week and the company’s shares are expected to begin trading on the ASX in early December.

The book build of the fully underwritten $337.5 million initial public offering of credit bureaux Veda will close this week after strong early orders for shares in the Pacific Equity Partners portfolio company.

Buoyant equity markets - the S&P/ASX 200 Index is up 21 per cent over the last 12 months - combined with demand for Veda’s shares at $1.25 each is pushing the IPO’s timetable forward.

Veda’s shares are expected to begin trading on the ASX as early as the first week of December after the issue of a prospectus next month.

The prospectus will give further detail of the sale of 270 million shares as well as the financial performance of Veda since Pacific Equity Partners acquired the company in July 2007 for an enterprise value of $974 million.  

The IPO will give Veda a market value of about $1 billion. It is priced at 12.5 times proforma 2013 earnings before interest, tax, depreciation and amortization of about $100 million.

UBS AG and Citigroup Inc are lead managers.

Veda’s Australian and New Zealand credit bureaux facilities are now a source of consumer credit information. In the third quarter this year compared with the same period last year, overall credit demand increased by 7.4 percent, according to the company.