The $1.3 billion initial public offering for Perth, Australia-based Emeco Holdings has attracted strong investor interest, according to Australian Internet reports. Emeco plans to issue between 450.8 million and 478.7 million shares at between $2.10 and $2.50 per share to raise AU $1.01 billion to AU $1.13 billion.
The capital will be used to reduce Emeco’s debt to AU $250 million, enabling it to borrow more money to capitalize growth in Australia, the United States and other international markets.
Emeco, which last month acquired Australian earthmoving rental company Bevans, continued its acquisition activity last week with the purchase of 50 heavy earthmoving machines from TSM North America for U.S. $11.4 million. For the price, the company will also obtain a number of TSM’s existing equipment rental contracts.
Emeco, whose North American operations are based in Houston, plans to open a facility in Kentucky, near where the machines are partially deployed under rental contracts with coal mining companies. Emeco also has a facility in Atlanta, and, in August 2005, acquired River Valley Equipment in Edmonton, Alberta. Emeco North America is No. 76 on the RER 100.