MYOB Group has lodged with the Australian Securities and Investments Commission (ASIC) a Prospectus for an initial public offering and listing on the Australian Securities Exchange of its fully paid ordinary shares.
The offering to retail and institutional investors is expected to raise total proceeds of A$831.7 to A$833.8 million based on an indicative price range of A$3.00 – A$4.00 per Share, valuing the company at a total enterprise value of A$2.34 to A$2.69 billion.
Established in 1991, MYOB now serves over 1.2 million businesses across Australia and New Zealand, offering solutions around accounting, payroll, tax, CRM, websites, job costing, practice management, inventory, mobile payments and more.
MYOB is currently majority-owned by Bain Capital with Bain Capital insisting it “will not sell any of its Shares in the Offer.”
At completion of the Offer, Bain Capital will hold approximately 57% of the total issued capital of the Company, assuming that the Final Price is at the mid-point of the Indicative Price Range and that 50% of the Existing Retail Notes are exchanged through the Noteholder Exchange Offer. Bain Capital has entered into an escrow arrangement in relation to its Shares.
Justin Milne, MYOB chairman, says MYOB is “well positioned” to carry out its growth strategy and continue to build on its position in small business and payroll software market through the rapid growth of cloud solutions.
"The return of MYOB to the ASX after six years of private ownership represents a great opportunity for both shareholders and our clients,” he says.
“MYOB is a market leader within each segment it operates, and the company continues to innovate in its key markets of Australia and New Zealand.”
Tim Reed, Chief Executive Officer of MYOB, says the IPO was a “significant event” for the company.
“The company has taken enormous strides in recent years under the ownership of Bain Capital,” he adds.
“We have made significant investment into R&D in the business to innovate and further drive our leadership through our range of cloud accounting solutions.
“We continued to capitalise on this strong base with rapid adoption from both new and existing clients, with 67% of new clients choosing cloud products and more than 116,000 paying subscribers using our cloud solutions as at 31 December 2014.”
According to MYOB Director, Craig Boyce, MYOB is an “exciting and dynamic business” that has transformed into an “innovative cloud business.”
“It has been rewarding to go on the journey with MYOB and we look forward to our continued investment in the company to support its strong growth objectives,” he adds.
At present, Boyce says MYOB is the market leader in the SME Software Market by users, estimating that its users comprise approximately 60% to 65% of the total number of Accounting Software users.
Furthermore, the company also claims to be the market leader in the Practice Software Market by revenue, estimating that its revenue last year comprised 60% to 65% of total revenues in this market.
Boyce adds that MYOB is also a market leader in the Enterprise Software Market by revenue, estimating that revenue last year comprised approximately 15% of total revenues in this market.
At present, the markets in which MYOB operates, Australia and New Zealand, are undergoing a growth period, underpinned by an increasing number of businesses using accounting software, increasing take-up of cloud solutions and increasing prices and functionality.
As a result, MYOB believes it is well-placed to benefit from the shift to the cloud, continuing its recent momentum in cloud market share and migration of its long-term desktop user base to the cloud.