SYDNEY, May 24 (Reuters) – Skate, surf and streetwear manufacturer Globe International Ltd burst on to the Australian Stock Exchange at a 50 percent premium on Thursday.
Shares in the group, which owns the Mooks, M-ONE-11 and Globes Shoes brands, kicked off trade at A$1.50 from a A$1 issue price, before easing to A$1.46 with around 2.7 million shares changing hands after 30 minutes of trade. Around 74 million shares were issued through the prospectus, giving the group a market capitalisation of around A$545.7 million based on 363.8 million shares on issue.
Founders Peter and Stephen Hill, alongside their brother Matthew Hill, plan to retain around 76 percent of the group and say the initial public offering would help facilitate Globe’s growth and development.
Part of the proceeds raised will be used to fund the cash component of an acquisition, partially repay a promissory note, and repay loans outstanding to existing shareholders and third parties.
In its prospectus, the group forecasts sales of A$234.4 million for 2001/02, giving it A$42.1 million in earnings before interest, tax, depreciation and amortisation.
Globe, which also owns the Australian rights to the Stussy and Mossimo brands, forecasts net profit will rise to A$28.4 million in 2001/02, up from A$15.4 million for the current financial year.
The Globe business has catapulted skateboarding brothers Peter and Stephen Hill on to this year’s Business Review Weekly list of Australia’s richest 200 people.
The brothers ranked as BRW’s “highest placed debutantes” with a fortune estimated at A$300 million.
Shares in Billabong Australia Ltd, Australia’s other listed surfwear manufacturer which debuted on the ASX in August 2000, are now trading at A$4.87, more than double their A$2.30 issue price.
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