MYOB marks biggest ASX float this year

MYOB marks biggest ASX float this year

Shares jump 7 per cent on debut to close out at $3.89

Accounting and payroll software vendor, MYOB, has made an impressive debut on the ASX (ASX:MYO), marking the largest float this calendar year.

An initial public offering of $833 million was made last week with a share price tag of $3.65. Its debut saw shareholders make a 7.4 per cent premium as the share price commenced at $3.91 before finishing at $3.89 by the close of trade on May 4.

Six years ago, Manhattan Software purchased MYOB, effectively removing it from the ASX and taking it private. In 2011, MYOB was acquired by Bain Capital for $1.2 billion and Bain is currently the majority shareholder at about 58 percent.

In past three years, MYOB has spent more than $100 million in research and product development. It also transformed its business model for its SME and enterprise solutions divisions from a desktop solution to the Cloud.

According to MYOB chairman, Justin Milne, this business transformation has enabled it provide strong revenue and earnings growth, EBITDA expansion and strong operating cash flow generation.

He stated the purpose of the listing was to allow the vendor to repay existing liabilities, gain access to capital markets, broaden its shareholder base and increase its public profile as a listed entity.

“We will welcome our new investors to participate with us in our growth as more and more small businesses head to the Cloud to manage their accounts,” MYOB CEO, Tim Reed, said. “By focusing our R&D on Australia and New Zealand, we believe our Cloud solutions are an excellent fit for businesses and accountants in this exciting market segment.”

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Tags MYOBTim Reedaccounting softwareAustralian stock market (ASX)

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