Mantra Group IPO to fuel growth plans

Mantra Group IPO to fuel growth plans
By admin


Mantra Group’s quest to further grow its network of hotels has seen it announce an initial public offering of approximately 53% of shares on issue at a price of $1.80 per share.

The share market capitalisation of $449 million has an enterprise value of $538 million, the hotel group confirmed.

“We have worked hard to strengthen our portfolio, invest in market-leading systems, and develop a significant pipeline of growth opportunities in Australia, New Zealand and Indonesia,” chief executive Bob East said.

“The listing of Mantra Group will allow us greater flexibility in delivering on that growth pipeline and I look forward to welcoming fellow investors as part of this process.”

He identified its mix of operating structures as its “competitive edge” – a view echoed by chairman Peter Bush as he highlighted average growth of 6% per annum since 2004 of the segments of  the Australian accommodation market in which Mantra operates through its Peppers, Mantra and BreakFree brands.

“We believe that Mantra Group is well-positioned to benefit from anticipated future growth because of its increasing brand awareness, range of flexible operating structures and scalable operations,” Bush said.

“We are confident this will provide investors with a stable, resilient investment with opportunities for further growth.”

Current shareholders EV Hospitality and UBSAHPL will retain their current respective investments in the hotel firm, entering into voluntary escrow agreements as set out in the prospectus.  Certain members of Mantra management will convert a majority portion of their existing share options into Mantra shares upon listing and will also enter into voluntary escrow agreements.

The group currently comprises 113 properties and over 11,600 rooms in hotels, resorts and serviced apartments across Australasia and Indonesia.

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