Evans Dixon Limited

Evans Dixon is an Australia based financial services organization with a rich exposure over more than 30 years into the market. It operates through Evans & Partners, Dixon Advisory and Walsh & Company brands and provides a diverse range of financial services. The group delivers its financial advisory and investment management services through several business units across three key operating segments i.e., Wealth Advice, Capital Markets and Funds Management. Recently, Evans Dixon (Proposed ASX code: ED1) has issued an IPO prospectus to offer up to 52.9 million shares at the offer price of $2.50 per share to raise gross proceeds of $157.2 million with the ability to sell a further 10.0 million shares to raise an additional $24.9 million through oversubscriptions. It is expected that the shares will be listed on ASX around May 14, 2018. The main objective to dilute its ownership is debt repayment, provide mechanism for staff incentivisation and retention through the provision of non-cash compensation and equity schemes, pursue growth opportunity, and broaden the company’s shareholder base and provide a liquid market for shares. As per the prospectus, Evans Dixon Wealth Advice, Capital Markets, and Funds Management are estimated to contribute around 27%, 29%, 44%, respectively of the Group’s pro forma FY18 EBITDA (excluding corporate unallocated costs).


IPO Details (Source: Company Prospectus)

On the other hand, the initial implied annual dividend yield was declared as 4.1%, based on the company’s target dividend pay-out ratio of 80% of the pro forma forecast FY18 NPATA. Further, the company intends to declare and pay dividend in May 2018. Besides this, the group expects to continue to get benefit from growing number of affluent and high net worth individuals (HNIs), strong performance of domestic and global investment market, Australia’s compulsory superannuation system and growth in the self-managed superannuation fund sector, rise in number of people approaching retirement plan, growing Australian population, and accessible and well-regulated Australian financial markets. It is also key to note that Dixon funds has recently announced buybacks of up to 35 million shares to support its unit price. While it can be a differentiator, the ongoing investigations and challenges in the banking sector may pose some level of headwinds to the performance.
 

Koppar Resources Limited

Koppar Resources Limited (proposed ASX code: KRX) was incorporated on 5^th February 2018 for the primary purpose of acquiring Koppar Resources Europe Pty Ltd with the objective of exploring and developing copper, zinc and other mineral opportunities. The company has a conditional right to acquire mineral exploration projects located in the Trondelag region in Norway, namely, Lokken Project, Tverrfjellet Project, Grimsdal Project, Illingdal Project and Storwartz Project. Since, it is recently incorporated that’s why there is not much information on its operating history or historical financial performance. Moreover, it is yet to conduct its own exploration activities on the area of land, subject to the Projects.The company has released prospectus to issue over 22,500,000 shares at an issue price of $0.20 per share and will raise a total amount of $4,500,000. It is expected that the shares will be quoted on ASX around 16 May 2018.


IPO Important Dates (Source: Company Prospectus)

Objective of Fresh Issue: The proceeds from the offer will be used for fulfilling working capital requirement and administration expenses, exploration expenditure and projects assessment, and continue to pursue other acquisitions that have a strategic fit for the company. Besides this, the company is subject to customary risks associated with an exploration company, such as the volatility of base metal prices and exchange rates, exploration costs and risks with respect to the holding of exploration tenure. Henceforth, while investors can keep an eye on the stock, it might be prudent to wait until the company materializes well on its operating activities.

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