Flower grower and wholesaler Lynch Group has repriced its initial public offering and its brokers have underwritten the deal to ensure it gets away.
The company was now seeking to raise $206 million for the float at $3.60 a share, according to a book message sent to funds by brokers JPMorgan, Jarden and Citi on Friday afternoon, says Lynch Group CEO Hugh Toll.
The new price represented 15 times forecast consolidated net profit after tax and amortisation.
Lynch had originally set out to raise $315 million at $4.05 a share, which valued it at 16.5 times forecast consolidated NPATA, or $550.5 million on an enterprise value basis and a $484.1 million market capitalisation.
Under the recut deal, the market capitalisation would come in at $429.6 million, an 11.3 per cent fall.
The $206 million raising was split between $127 million worth of primary issuance and a $79 million selldown by existing shareholders.
Lynch Group is majority-owned by Australian private equity firm Next Capital. The company was founded by the family of Leo Lynch in 1915, and has been backed by Next Capital since 2015.
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