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CIMIC Group Ltd CIM

Rating as of

Morningstar’s Analysis

Valuation
Currency in AUD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Ventia IPO Interest Underwhelms but the Terms Are Sweetened. Fair Value Estimate Now AUD 2.80

Mark Taylor Senior Equity Analyst

Analyst Note

| Mark Taylor |

In what must be an embarrassing circumstance for the lead managers, underwhelming interest sees no-moat Ventia’s IPO offer size reduced to a fixed AUD 438 million, well under half the originally intended range of AUD 1.0 billion to AUD 1.2 billion. And the issue price is now set at AUD 1.70, 38% to 46% below the initial indicative offer range of AUD 2.75 to AUD 3.15.

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Company Profile

Business Description

Cimic is Australia's largest contractor, providing engineering, construction, contract mining services to the infrastructure, mining, energy, and property sectors. The business structure consists of construction, contract mining, public-private partnerships, and property, along with 45%-owned Habtoor Leighton. Cimic has exited its Middle East business. ACS/Hochtief owns 76% of Cimic.

Contact
177 Pacific Highway, Level 25, North Sydney
Sydney, NSW, 2060, Australia
T +61 299256666
Sector Industrials
Industry Engineering & Construction
Most Recent Earnings
Fiscal Year End Dec 31, 2021
Stock Type
Employees 31,900