WACO INTERNATIONAL TO LIST ON THE JSE ON OR ABOUT 23 OCTOBER 2015 – TOTAL OFFER SIZE OF APPROXIMATELY R3.5 BILLION*

Waco International
WACO INTERNATIONAL MEDIA RELEASE
05 OCT 2015

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Waco International Holdings Limited (”˜Waco’ or ”˜Company’) has confirmed today that it will list on the main board of the securities exchange operated by the JSE Limited (”˜JSE’). The expected listing date is 23 October 2015. The company will be listed in the General Industrials – Diversified Industrials sector of the JSE, under the symbol ”˜WIH’.

Waco is a diversified equipment hire and industrial services business with operations in South Africa, other sub-Saharan Africa, Australia, New Zealand, the UK and Chile. The product offerings are in forming, shoring and scaffolding, relocatable modular buildings, portable sanitation and integrated hygiene services. 

Stephen Goodburn, Chief Executive Officer said: 

“We are on our way to a listing of the company in the next few weeks. This is a really momentous time as we see the company back into public hands after some fifteen years of private ownership.” 

The listing will facilitate an offer for sale of shares held by existing shareholders and also the issue of new shares. 

The existing shareholders are a private equity consortium led by Ethos Private Equity and including Waco management. The free float at listing is expected to be c.63% and existing shareholders will retain an aggregate of approximate 37% of the ordinary shares in the Company following the listing. 

Stephen Goodburn said: 

“Waco management will remain significantly invested in the business. It is a company of which we are particularly proud and want to be a part of in the future.” 

The Company will raise some capital from the issue of the new shares and the proceeds raised from the listing will be used to simplify the Company’s capital structure, with the current preference share structure falling away. 

A roadshow to investors in South Africa and internationally commences today. 

Stephen Goodburn said: 

“Following the listing we will be well positioned to continue on our growth path. The momentum of this business has been exceptional over the last three years with nearly a doubling in our Adjusted EBITDA. We have been diversifying the business into new but related product areas and into new countries. Our diversification will continue and in a sustainable way.” 

“We will have an attractive capital structure allowing us to raise capital in the future, should this be required. Bolt on acquisitions as well as organic growth initiatives will continue to be part of our future agenda.”  

According to management estimates, Waco is an established market leader in most areas where it operates with established brands, thus creating high barriers to entry. The Company has significant operational advantages through its wide spread branch network. The hire fleet is extensive. New products have been introduced over the years to service customer needs. This includes for example steam clean toilets for use in underground mining operations. 

Stephen Goodburn said: 

“There is a fantastic energy within the business. We are constantly looking at new ways to respond to clients’ needs. This has created new revenue opportunities for us. The culture of growth within the Company is embedded.”  

The final offer price and final number of shares issued is expected to be announced on 16 October 2015. 

Stephen Goodburn concluded: 

“We look forward to welcoming on board our new shareholders believing we have a strong investment story to tell. Opportunities abound which we will grasp with open hands to capitalise on our attractive prospects.”

 

* The offer size assumes the midpoint of the offer price range