The Beacon Lighting IPO is now underway

The Beacon Lighting IPO is now underway. Earlier this week, Beacon embarked on an investor road show with lead manager and underwriter Morgans. Beacon shares are being offered at 66¢, representing a multiple of 12.38 times forecast 2014 earnings, and valuing the Company at $142million with initial bids due on Friday. The retailer, which has 71 company-owned stores and 14 franchised outlets, expects to earn $11.5 million net and $17.2 million before interest and tax on sales of $150.3 million in 2013-14. Beacon clocked up 15 per cent to 20 per cent annual profit growth between 1995 and 2012, but earnings growth slowed last year to 3 per cent. This year, profits are forecast to rise 21 per cent, buoyed by rising home prices and housing starts and strong sales of LED lights. (VIEW LINK)