MYOB successfully completes bookbuild for its initial public offer

01 May 2015

MYOB Group Limited (MYOB) successfully completed the institutional bookbuild for its initial public offer yesterday. The Final Price was determined at the conclusion of the bookbuild and is $3.65 per Share.

Key Offer statistics
Final Price per Share $3.65
Number of Shares issued or sold under the Offer* 228.3
Total proceeds of the offer $833.1m
Total number of Shares on issue at Completion 584.5m
Implied market capitalisation (based on the Final Price) $2,133m
Implied enterprise Value (based on the Final Price) $2,568m
Final Price per Share /pro forma 12 month June-16 forecast NPATA per Share 23.5x
Enterprise value/pro forma 12 month June-16 forecast EBITDA 16.0x

*Includes 2.2m of existing Shares and 226.1m of new Shares

MYOB Chairman Justin Milne noted the strong demand for the company’s shares from a range of investors.  “I am inspired by the great support we have received from investors around the world, including local institutions in Australia as well as US investors.  We saw a significant level of participation from Eligible Retail Noteholders in the offer, with approximately 57% of holders exchanging their notes into shares.  We see this wide range of investor interest as a strong vote of confidence in MYOB.” 

Tim Reed, Chief Executive Officer of MYOB, said: “Listing on Monday will be a proud day for the whole MYOB team.  In the past six years as a private company, we’ve transformed MYOB into a wonderfully innovative business that continues to focus on the needs and challenges of SMEs.  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.

“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,” he added.

Craig Boyce, MYOB director, said: “It has been a privilege to work with the team at MYOB over the last 3.5 years. Bain Capital prides itself on building great businesses such as MYOB, possessing a well-known brand with innovative products and leading market share, led by an experienced management team in an exciting and dynamic industry.  As a Director, I am eager to continue supporting the growth of this iconic, Australasian, cloud-driven technology business with our new shareholders.”

MYOB's largest shareholder, Bain Capital will retain approximately 58% of MYOB, reflecting its continuing support for the company.

Applicants under the Broker Firm Offer should contact their broker to confirm their allocations. Other Applicants wishing to confirm allocations or who have any further queries regarding the Offer can contact the MYOB Offer Information Line on 1800 992 613 (toll free within Australia) or +61 1800 992 613 (outside Australia) between 8:30am until 5:30pm (Sydney time) Monday to Friday. The MYOB Offer Information Line will close on 15 May 2015.

MYOB’s Shares will trade under the code MYO and are expected to commence trading on the

Australian Securities Exchange on Monday, 4 May 2015 at midday Sydney time on a conditional and deferred settlement basis.

-ends-

For further comment or other information please contact:

Australia

Sarah Beyrath, MYOB PR and Corporate Affairs Manager

P: 02 9089 90439 M: 0427 223 841 E: sarah.beyrath@myob.com

Dan Billings, FTI Consulting

P: 02 8298 6100 M: 0447 010 499 E: daniel.billings@fticonsulting.com

Andrew Stokes, FTI Consulting

P: 02 8298 6100 M: 0416 967 038 E: andrew.stokes@fticonsulting.com

New Zealand

Sarah Putt, MYOB NZ Public Affairs Manager

P: 09 925 3515 / M: 029 777 0256/ E: sarah.putt@myob.com

About MYOB

Established in 1991, MYOB is a market leading provider of business management software solutions in Australia and New Zealand. It makes business life easier for approximately 1.2 million businesses across Australia and New Zealand by simplifying accounting, payroll, tax, CRM, websites, job costing, practice management, inventory, mobile payments and more. MYOB also provides ongoing client support via many channels including a network of over 40,000 accountants, bookkeepers and other consultants. MYOB is committed to ongoing innovation, particularly in cloud computing solutions, and spent more than AU$100 million on research and development in the last three years.

IMPORTANT NOTICES

This announcement is only being distributed outside of the United States and may not be distributed, forwarded or otherwise used in the United States.

This announcement is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this announcement nor anything contained herein shall form the basis of any contract or commitment.  In particular, this announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States.  Additionally, any securities to be offered and sold in the Offer have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or the law of any state of the United States, and may not be offered, sold or resold, directly or indirectly, in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable securities laws.