NRW closes up 20.5% after $300m IPO

Welshpool-based mining and earthmoving contractor NRW Holdings Ltd, which recently completed a $303 million initial public offering, has debuted strongly on the Australian Securities Exchange, closing up 20.5 per cent at $2.41.

The company issued 152 million shares at $2 each, giving it a market capitalisation of $502.5 million.

More than $262 million of the float proceeds were used to pay vendor shareholders, including founding chief executive Jeff McGlinn, while $24 million was to be spent repaying bank debt, $14 million on fees and expenses and $8.6 million to fund future growth opportunities.

Mr McGlinn's 20.2 per cent stake in NRW was reduced to 9.1 per cent while the percentage of the business owned by other senior management fell from 29.8 per cent to 14.7 per cent.

NRW said it expected to post a statutory net profit of $12.7 million for 2006-07 and $32.1 million in 2007-08.