Compass Hotel Group first day on ASX
Western Australian pub owner Compass Hotel Group Ltd has finished its first day of trading on the Australian Securities Exchange five per cent stronger.
The company closed its initial public offer of 123 million shares at $1.00 each late last month, and will use the capital raising to help fund its $190 million acquisition of 12 hotel and tavern properties in Western Australia.
Compass shares closed five cents higher at $1.05 today, after hitting an intraday high of $1.09.
The company has forecast a net profit for 2007/08 of $970,000, and $10.4 million for the following financial year.
CHG, which is made up of Compass Hotel Group Ltd and Compass Hotel Group Trust, said its IPO attracted a broad range of retail and institutional investors from across Australia.
“Investors will receive dividends from the company … as well as distributions from the trust, which will lease the properties to the company,” it said.
The IPO will help fund the group’s $190 million acquisition of 12 hotel and tavern properties in WA, including the Carine Glades taven in Duncraig, the Albion Hotel in Cottesloe and Mandurah’s Brighton Hotel.
Other pub properties named in its prospectus are the Kalamunda Hotel, the Belmont Hotel, the Herdsman Lake Tavern, the recently refurbished Peel Alehouse, Peninsula Tavern in Maylands, Balga’s Princess Road Tavern, and the Gosnells Hotel.
CHG is the second Australian stock exchange listing for the 2008 calendar year.
