Leading, independent traffic management operator with established and extensive network

OnMarket Bidding Closed AVADA Group Ltd ASX: AVD

AVD

AVADA Group Ltd IPO | ASX: AVD

Fixed Priced IPOType of Offer
29 Nov 21Offer Open
02 Dec 21Pay By
$1.00Price
$32.5 millionSize of Offer
$2,000 Minimum Investment
Shaw and PartnersLead Manager

Offer closed early due to strong demand.  Please ensure applications are funded by 5pm, Thursday 2 December to avoid missing out.

The offer may close early and the 'Pay By' dates may change. Applications may be scaled back and duplicate bids under the same investment profile, investor name or residential address may be cancelled.

Key Investment Highlights

Introduction

AVADA Group Ltd (ASX: AVD) is a provider of traffic management control services including planning and permit, traffic control, equipment hire, event management and incident response. The purpose of the IPO is to fund the acquisition of five complimentary businesses that will provide AVADA an established and extensive network, strategically located throughout QLD and NSW. Key clients include state and local governments, federally funded contractors and major contractors in the infrastructure, construction, utilities, telecommunications and other industrial sectors.

Traffic management is a legislative requirement and essential to all civil infrastructure and maintenance service providers, resulting in consistent workflow from both new project investment and recurring maintenance requirements. Consistent workflow is provided by investment in new projects and recurring maintenance requirements. With the Australian traffic management sector being highly fragmented, AVADA will be the only listed provider of traffic management control services in Australia.

The Group will have a strategically located network of depots capable of servicing clients throughout the region, supported by a large vehicle fleet, a capable and experienced workforce, and information technology capabilities (including real time monitoring, planning and scheduling software). Through benefit of economies of scale, AVADA will have the ability to share resources, service innovations and market sector expertise, leveraging the varied industry expertise of management. The Company will also seek to improve efficiency through centralised back‑office functions and an increased procurement capability, whilst pursuing organic growth and acquisitions to expand geographically and into adjacent services in the civil infrastructure and maintenance services sector, leveraging AVADA’s corporate structure and existing client base.

AVADA has Pro Forma forecast revenue for FY22 of $146.6 million and $15.5 million Pro Forma forecast EBITDA.

The AVADA Service Network

Offer Overview

AVADA Group Ltd is undertaking an IPO on ASX to raise $32.5 million via the issue of 32.5 million shares under the Offer at an offer price of $1.00 per share.  On listing, the company will have an implied enterprise value of approximately $90 million at the Offer Price. 

  • The amount to be raised under the Offer from new shareholders is $30 million. 
  • The IPO has been underwritten by Lead Manager Shaw and Partners up to $30 million.
  • The amount to be raised under the Offer from Existing Shareholders (not underwritten) is $2,542,609, by the issue of 2,542,609 New Shares which are Committed Shares, being subscribed for by certain Existing Shareholders, at the Offer Price of $1.00.

AVADA’s dividend policy is to target a dividend payout ratio of 40‑60% of NPATA. It is the Directors’ intention to pay future interim dividends in respect of half years ending 31 December and full year dividends in respect to full years ending 30 June. It is anticipated that interim dividends will be paid in May with a final dividend paid in November, with the dividends franked to the maximum extent possible.

The Company intends to use the funding from the listing to acquire Verifact Traffic, D&D Traffic Management, Platinum Traffic Services, The Traffic Marshall and Arid to Oasis Traffic Solutions.

Industry Overview

AVADA Group Ltd’s businesses are in the Australian traffic management services market which is driven by population growth and rising urbanisation (driving demand for traffic management services), growth in the number of registered vehicles, increasing government infrastructure spend, increased compliance requirements, asset renewal projects, major events, emergency and natural disaster response requirements, as well as the leverage of digital technologies and improved processes. All of these drivers also underpin the expansion of the broader civil infrastructure services and maintenance market.

The traffic management services market will be supported by growth in construction activity over the forecast period, supporting project-based opportunities and expanding the asset base to be maintained on an ongoing basis. In the short-term, the total volume of construction activity in Australia has slowed due to the net impacts of the pandemic on demand. However, recovery in construction activity is expected from 2022-23, rising to $212.1 billion by 2024-25 with the recovery of the labour market and population growth, supported by the roll out of public sector projects as part of the stimulus, and the robust investment in major public works projects. In addition, the infrastructure maintenance market is projected to reach $25.2 billion in 2026.

Infrastructure Maintenance Activity Forecasts in Australia

Company Overview

Following completion of the acquisitions, Avada will be a leading, independent, Australian traffic management services provider that will be building capabilities in offering a wide range of adjacent services to the civil infrastructure and maintenance sectors. Its subsidiaries will represent an established and extensive network, with the competitive advantage of being able to service public and private sector clients across a diverse range of end-use sectors throughout Queensland (QLD) and New South Wales (NSW).

With the Australian traffic management sector being highly fragmented, AVADA will be the only listed provider of traffic management control services in Australia. The Group will offer scale, broad market and service capability and geographic reach. AVADA is well positioned to benefit from infrastructure investment and recurring maintenance growth with traffic management being essential to civil service providers.

The Acquisitions

The company has entered into various Share Sale Agreements for the purchase of the following complementary businesses:

  • Verifact Traffic (Verifact Acquisition Agreement). Verifact Traffic is one of Queensland’s leading traffic management companies, providing services to public and private clients throughout South‑East and Central Queensland.
  • Arid to Oasis Traffic Solutions (Arid to Oasis Acquisition Agreement). Arid to Oasis Traffic Solutions, operating from multiple locations including Townsville, Cairns, Rockhampton, Bundaberg and Mackay, offers integrated traffic management services to clients across Northern and Central Queensland.
  • The Traffic Marshal (Traffic Marshal Acquisition Agreement). The Traffic Marshal provides integrated traffic management services to a diversified customer base in Greater Sydney, focusing on clients in the construction, telecommunication, infrastructure and energy industries
  • Platinum Traffic Services (Platinum Acquisition Agreement). Platinum Traffic Services provides integrated traffic management services in Queensland and New South Wales, focusing on construction and infrastructure‑related clients
  • D&D Traffic Management (D&D Acquisition Agreement). D&D Traffic Management is one of Greater Sydney’s leading traffic management companies, predominately focusing on major utilities, roads, rail and construction

Integration of the AVADA Group Businesses into AVADA will be a key priority immediately post‑Completion. AVADA has formulated a low risk plan for the integration of the AVADA Group Businesses. A phased approach to integration will be adopted whereby the AVADA Group Businesses continue to focus on a ‘business as usual’ approach to allow each AVADA Group Business to continue to organically grow.

Business Strategy

AVADA’s business strategy is to establish a national network of traffic management and ancillary service providers servicing the civil infrastructure and maintenance services sector. AVADA’s corporate strategy is to grow its business and earnings by building on its strengths which include:

  • quality businesses: individual brands and key management are retained, leveraging strong local reputations and client relationships to support further growth, and ensuring streamlined integration;
  • quality management and Board: combines industry and technical expertise with the Chairman having ASX50 experience;
  • an extensive service network: providing diversification and allowing AVADA to service large national clients; and
  • a low risk integration plan: a phased approach allowing each AVADA Group Business to focus on client service delivery.

Growth Opportunities

AVADA will embark on a range of initiatives as part of its growth strategy and has the network and opportunity to develop a national footprint and offer a breadth of civil infrastructure and maintenance services, delivering consistent and sustainable growth. Management has identified the following growth initiatives including:

  • maintaining and expanding AVADA’s share of a growing market through a flexible go‑to‑market strategy, leveraging market expertise and ISO compliant safety and reliability;
  • a phased and considered integration that can support growth through the identification and application of best‑in‑class processes and the consolidation of corporate functions to enable further integration;
  • expanding geographically in Australia and New Zealand both through organic growth and acquisitions; and
  • developing adjacent services in the civil infrastructure and maintenance services sector.

Clients

AVADA’s client portfolio includes government clients at state and local council levels, federally funded contractors and major contractors in the utilities, infrastructure, construction and other industrial sectors. The AVADA Group Businesses provide a complementary mix of individual business strengths, including diverse existing business networks and relationships, and varied sector expertise to support tender wins across the group.

The AVADA Group Businesses have a broad client base, with no single contract accounting for more than 15.0% of FY21 Group Revenue. The client base is well diversified with the five largest clients contributing 29.4% of the FY21 Group Revenue.

Competitive Advantages

AVADA will have several competitive advantages. The group will have a strategically located network of depots capable of servicing clients throughout the region, supported by a large vehicle fleet, a capable and experienced workforce, and information technology capabilities (including real time monitoring, planning and scheduling software).

The group will have the ability to share resources, service innovations and market sector expertise, leveraging the varied industry expertise of management. AVADA will seek to improve efficiency through centralised back‑office functions and an increased procurement capability, whilst pursuing organic growth and acquisitions to expand geographically and into adjacent services in the civil infrastructure and maintenance services sector, leveraging AVADA’s corporate structure and existing client base.

Revenue

AVADA offers integrated traffic management services including planning and permit, traffic control, equipment hire, event management and incident response.

Traffic management is a legislative requirement and essential to all civil infrastructure and maintenance service providers, resulting in consistent workflow from both new project investment and recurring maintenance requirements. The AVADA Group Businesses’ revenue is predominantly sourced from traffic control and vehicle hire, with ancillary revenue sources including equipment hire and planning. Revenue is diversified across geography and customer type.

From FY20 to FY21, the AVADA Group Businesses’ Pro Forma revenue on a combined basis grew by 9.1% to $117.0 million, whilst Pro Forma EBITDA grew by 20.7% to $11.5 million. Forecast FY22 Pro Forma revenue is $146.6 million. Forecast FY22 Pro Forma EBITDA is $15.5 million.

Key Offer Statistics

Use of Funds

Funds raised under the Offer will be applied as follows:

For further information on the Key Offer Statistics and Use of Funds, please see the prospectus.

Key Board and Management

AVADA Group Ltd Board and Key Management Personnel are highly qualified and experienced, combining industry and technical expertise with the Chairman having ASX50 experience. This team will work with the AVADA Group Businesses to continue to drive organic growth and pursue acquisition opportunities in a disciplined way. These include:

Lance Edwin Hockridge - Non‑Executive Chairman

Lance Hockridge is a globally experienced manufacturing, logistics and transportation executive with a focus on leading the safety, operational and financial transformation of businesses. Lance was previously the Managing Director and chief executive officer of Aurizon Holdings Limited, following the demerger of Queensland Rail and QR National. Lance joined the then Queensland Rail as chief executive officer in 2007, leading the Company through a successful IPO in November 2010 (subsequently an ASX 50 company). Lance led Aurizon through a major safety, customer, cultural, operational and financial transformation.

Lance has nearly 40 years’ experience in the transportation and heavy industrial sectors in Australia and the United States of America with BHP, BlueScope Steel and Aurizon.

Ann‑Maree Robertson - Independent Non‑Executive Director and Deputy Chair

Ann‑Maree will be appointed as a Non‑Executive Director on Completion. Through her auditing and commercial accounting experience, Ann‑Maree has developed an extensive understanding of financial reporting, accounting, governance and internal control systems across a wide variety of businesses. Ann‑Maree has been Director of Audit & Assurance at Nexia Australia since 2007.

Joanne Maree Willoughby - Independent Non‑Executive Director

Jo Willoughby will be appointed as a Non‑Executive Director on Completion. Jo has a proven ability to deliver profitable and sustainable growth through customer‑led innovation and change in fast‑paced, complex and regulated operating environments. Jo’s diverse industry experience includes financial services, logistics, retail and professional services.

Jo is Independent Chair for Collins SBA Holdings, and is a member of the Advisory Board Centre and is an independent director for a number of private companies.

Daniel James Crowley - Managing Director and Chief Executive Officer

Dan Crowley is the CEO and founder of the Verifact Traffic business.1 Verifact Traffic’s traffic management business has operated under Dan’s leadership since 2008 and is one of Australia’s market leaders in traffic management. Verifact Traffic is a founding business of the Group. Dan will direct and execute the strategic direction of the Group. Dan is a past president of the TMAQ and the founding president of the TMAA.

Roberto Cazzolli - Executive Director and General Manager (D&D Traffic Management)

Rob Cazzolli is the Managing Director of D&D Traffic Management. D&D Traffic Management, based in New South Wales, is a founding business of AVADA. Rob brings significant traffic management industry experience from within the New South Wales market. Rob joined D&D Traffic Management in 2000 and has been a joint director of the business since 2003. Rob led the restructuring and expansion of the D&D Traffic Management business to focus on traffic management. Rob’s commercial acumen and structured approach to developing management and operational systems has been pivotal in developing D&D Traffic Management into a market leader in traffic management.

Paul Fitton - Chief Financial Officer and Company Secretary

Paul Fitton is responsible for the financial reporting, governance and corporate finance functions of the Company. Paul has over 20 years’ professional services experience within audit and corporate finance at PwC (10 years) and Deloitte (10 years), in Brisbane, London and Melbourne. Paul was part of the audit and the transaction services teams, most recently as Director, Deals Transaction Services at PwC Brisbane. Paul’s background gives him extensive experience guiding companies through the IPO process and through complex acquisitions and transactions.

Risks

You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Public Offer. Like all investments, an investment in AVADA Group Ltd carries risk. As set out in Section 6 of the Prospectus, AVADA Group Ltd is subject to a range of risks, including but not limited to decrease in capital investment and construction activity, cyclical nature of business, dependence upon key personnel, limited operating history, acquisition due diligence, operating risks and contractual risks.

 

Section 734(6) disclosure: The issuer of the securities is AVADA Group Limited ACN 648 988 783. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).

OnMarket has a limited allocation. The Public Offer may close early and the 'Pay By' dates may change without notice. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

 

 

Discover investment opportunities here


Equity Crowdfunding 1 days left

Sawce Pty Ltd

Sawce Pty Ltd
Australia's online marketplace for furnishing & fitouts
I need it, I'll SAWCE it!

 

Sawce.com.au is the FIRST and ONLY online marketplace dedicated to helping people furnish and fitout any space – home, commercial and office. Starting with over a hundred thousand products from hundreds of retailers, & targeting 1 million products within 12 months, they are the Domain.com and RealEstate.com of the $50B Australian furnishing and fitout industry.

 

Using their successful pilot site with 30,000 users a month as the base, Sawce.com.au launches in October, with rapid expansion anticipated as a pure-play technology-driven marketplace.

 

Before investing please consider the offer document and the general risk warning.

Min. reached - now targeting $1 million

146%

$291,094

Raised

1-3.5%

Equity

53

Investors
IPO Upcoming

ChemX Materials Ltd ASX: CMX

ChemX Materials Ltd
Focussed on producing materials required for global energy transition and de-carbonisation markets

 

Commitments in excess of $7m min offer size. OnMarket has a limited allocation

 

ChemX Materials Limited (ASX: CMX) is a materials technology company developing new and innovative solutions to produce materials required for the global energy transition and de-carbonisation markets. The Company’s initial focus is in-house developed technology to process and supply High Purity Alumina (“HPA”). HPA is a critical material for the Lithium-Ion Battery and LED & Semiconductor markets. ChemX is planning to construct a pilot plant within 12-18 months.

 

The Company also holds two exploration licences in the Eyre Peninsula, South Australia which are prospective for kaolin / halloysite and manganese, key materials for the decarbonisation of industrial processes, Hydrogen storage, CO2 Capture and battery precursor material.

$0.20Price
Up to $8 millionSize of Offer
06 Dec 21Offer Open
10 Dec 21Pay By
IPO Live

Belararox Ltd ASX: BRX

Belararox Ltd
Mineral explorer focused on meeting the surge in demand from battery and renewable energy markets

 

Belararox Limited (ASX: BRX) is an Australian mineral explorer focused on securing and developing resources to meet the surge in demand from the technology, battery and renewable energy markets.

 

The Company directly owns 100% of the Belara metals project in NSW that comprises a granted exploration licence and two exploration licence applications, and the Bullabulling gold and nickel project located Western Australia that comprises a package of 26 granted prospecting licences located close to the Bullabulling Gold Mine.

 

The Belara Project is a highly prospective near-term base metal opportunity. Previous drilling has shown mineralisation with excellent continuity, containing significant intersections of zinc, copper, silver, lead and gold and is located close to well-developed infrastructure. 

$0.20Price
Up to $6 millionSize of Offer
30 Nov 21Offer Open
06 Dec 21Pay By
IPO Live

Dragonfly Biosciences Ltd ASX: DRF

Dragonfly Biosciences Ltd
Producing high quality CBD health and wellness products from ‘seed to shelf’, sold through blue chip retailers

 

Dragonfly Biosciences Limited’s (ASX: DRF) develops cannabidiol (CBD) health and wellness products derived from the cannabis plant, owning and operating the entire production chain from ‘seed to shelf’. EU licensed strains are grown on its own organically certified fields in the EU, with CBD extraction undertaken at the Company’s ‘state of the art’ large scale extraction facility. 

 

Dragonfly has a 3-year track record of selling its CBD products through blue chip retailers in the United Kingdom (UK), such as Boots, Tesco, Sainsbury’s, Amazon and Harrods, and is now targeting international expansion to Australia, Asia Pacific and the USA. The company is forecasting revenues of $6.9 million for FY2021.

$0.20Price
Up to $11 millionSize of Offer
02 Dec 21Offer Open
10 Dec 21Pay By
Equity Crowdfunding 2 days left

Kredible (Tagg Technologies Pty Ltd)

Kredible (Tagg Technologies Pty Ltd)
Revolutionary talent search platform disrupting Australia’s multi billion dollar recruitment and job search industries.

 

Kredible is the next generation of talent search platforms, completely flipping the hiring process on it’s head by offering employers a searchable database of professionals who have all been verified by their previous employers via extensive reference checks, all displayed in an Uber-style review format. 

 

Currently, almost all businesses conduct talent searches through job boards or recruitment agencies via a lengthy, expensive and highly inefficient process. Kredible aims to fix this by offering employers a technology enabled platform to hire talent considerably faster, cheaper and with much more accuracy.

 

Disrupting this process represents a contestable revenue opportunity of over $12 billion in Australia alone.

 

Before investing please consider the offer document and the general risk warning

Min. reached - now targeting $1.25 million

104%

$259,655

Raised

4.8-20%

Equity

47

Investors
Equity Crowdfunding 3 days left

ReNutrients Pty Ltd

ReNutrients Pty Ltd
Cleantech meets Agtech. Revolutionary technology. Returning Nutrients to Nature

 

Every year over 419 million handheld batteries are sold in Australia and just 4% of these are recycled with the rest going to landfill. As batteries begin to break down in landfill, heavy metals can leach into the surface and groundwater, polluting our soils and waterways.

 

ReNutrients is on a mission to address the issue of battery waste in Australia whilst returning the valuable minerals used in the batteries to the ground. Via their exclusive distribution agreement with Finnish cleantech company, Tracegrow, ReNutrients has a suite of organic fertilisers made from recycled batteries that have shown increased yields for growers by up to 26% compared to traditional competing products.

 

Before investing please consider the offer document and the general risk warning.

Minimum Target $250,000

110%

$274,305

Raised

5-13.6%

Equity

184

Investors
Equity Crowdfunding Live

Doctors.com.au Pty Ltd

Doctors.com.au Pty Ltd
Preventative Health Care goes Digital

 

Doctors.com.au is an Australian health tech platform, empowering Australians with the right information at the right time to treat and prevent illness.

 

The SaaS business model attracts and retains consumers on the platform with AI-drive tech tailoring their preventative health care routine. Practitioners and clinics subscribe to the Practice Services Suite, and in doing so they can engage their patients and attract new ones.

 

Better health outcomes for Australians through prevention. Better financial health for practitioners.

 

Post Covid, digital health is the future.

 

Crowdfunding is risk, please consider the offer document & risk warning before investing

Min. reached - now targeting $1 million

134%

$267,200

Raised

4-17.5%

Equity

80

Investors
Equity Crowdfunding Live

Female Protective Clothing Hold. Co P/L*

Female Protective Clothing Hold. Co P/L*
Because girls play too.

 

Female led, female orientated, female hyped protective wear apparel whose primary values are quickly summarised; gear up and play hard.

 

Female participation is on the rise in the sporting industry, women no longer cook and clean dishes, they cook and clean their exhaust pipes… with 39m women globally playing impact sports.

 

The sports protective market was valued at USD 8.24B in 2018 and is growing at a CAGR of 4.01%. With the extreme sports market booming, and gender dynamic change, Stephanie Bofinger, founder of Fempro, spotted a crucial market need; protective wear created by a woman for a woman.

 

Impact sports require impactful prevention, which means impactful protection.

 

Before investing please consider the offer document and the general risk warning.

 

Minimum Target $100,000

63%

$62,601

Raised

4.8-16%

Equity

26

Investors
ECF OnMarket Bidding Closed

Cogniss Holdings Pty Ltd

Cogniss Holdings Pty Ltd
First to unlock power of NO-CODE app dev for EdTech & Digital Health Markets

 

Heard of Noom, Duolingo, Headspace or Sweat? In 2021, there were 80,000 new EdTech and Digital Health apps on the app store. And within 5 years the market for each is predicted to be US$404B and $456B respectively.

 

It is a dynamic space for app development. Yet traditionally these type of apps takes specialist programmers and analysts months and can cost up to $1M.

 

Cogniss makes making EdTech and Digital Apps easy with its NO CODE aPaaS business model. And in doing so is set to fill the void in the rapidly growing no-code, low-code market (31% CAGR) for building education and health apps.  

 

Before investing please consider the offer document and the general risk warning.

Min. reached - now targeting $2 million

374%

$1,121,893

Raised

3.2-14%

Equity

302

Investors