KEY POINTS:
Opus International Consultants, the former Ministry of Works and Development, is preparing to list on the New Zealand sharemarket nearly 20 years after being privatised and a decade after being sold to Malaysian investors.
The owners of the civil engineering company have sought proposals from four local investment banks about a partial listing on the NZX, the Business Herald understands.
A decision on who will lead the float, which is scheduled for September or October, is expected in the next two to three weeks.
The company was originally the Ministry of Works and Development and has been involved in the engineering for most of New Zealand's largest infrastructure projects, including all of the hydroelectricity schemes and the motorways in Auckland, Wellington and Christchurch.
More recently it did the civil and structural design for the Britomart transport centre, although it is primarily a roading projects company.
Opus was privatised in 1988 and then bought by Malaysian firm Kinta Kellas in 1996.
It is understood the owners want to sell a chunk of the company to raise cash for investments in Malaysia, but will retain a 51 per cent stake in the business.
Staff own another 25 per cent through options granted over the past few years which will be realised at the float - another motive for the sharemarket listing.
That leaves 24 per cent to float on the NZX, although staff may sell some of their shares in the initial public offering as well.
With around 1900 employees, Opus specialises in planning and development of infrastructure projects and operates in New Zealand, Australia, Canada and the UK.
It earned revenue of $252 million last year, mostly from New Zealand projects, and its earnings before interest, tax, depreciation and amortisation is understood to be about $20 million.
One source familiar with the float proposal said the company could have an enterprise value - debt plus equity - of $170 million to $180 million.
That would put it at a multiple of around nine times trading profits, slightly below Australian civil engineering companies.
Before the float can be confirmed, approval is needed from the shareholders of owner Opus International Group, a holding company listed on the Malaysian Stock Exchange.
The group is 62 per cent owned by UEM World which, in turn, is half-owned by Khazanah Nasional, the investment holding arm of the Government of Malaysia.
Opus International Consultants
* Formerly the Ministry of Works and Development.
* Bought by Malaysian company Kinta Kellas in 1996, which renamed itself Opus International Group.
* More than 1900 staff in New Zealand, Britain, Canada and Australia.
* Revenue of $252 million last year.
