Raubex Group Limited - To List On The JSE part 1

private placing roadshow commences monday 5 march 2007
leading road construction company in south africa
one of the largest listings on the jse in recent years
listing in the industrials - heavy construction sector of the jse

introduction
raubex, a dynamic south african road construction group plans to list on
the jse on 20th march 2007 in the industrial heavy-construction sector.
this represents the biggest direct listing on the jse for about three
years. the market capitalisation is estimated to be approximately r2.4
billion and the company is poised to benefit from increasing infrastructure
spend in south africa over the next five to ten years.
raubex was founded by j e `koos` raubenheimer in bloemfontein in 1974 and
it has delivered consistent growth and uninterrupted profitability for over
three decades. the group comprises of three main divisions being road and
civil infrastructure construction, road rehabilitation and aggregates and
employs over 2 800 people. the company`s vision is to become the leading
road construction and associated infrastructure operator in southern
africa.
offering highlights
raubex will be listed in the "industrials - heavy construction" sector
of the jse
the offer price range is expected to be between r13.50 and r15.00 per
share, implying a market capitalisation of between r2.2 and r2.4
billion
the offer, which is being managed by investec corporate finance
through a book building process, comprises a private placing of 55 852
730 raubex shares being sold by current shareholders. subject to a
further allotment (`greenshoe`) option granted by the company to
investec corporate finance, the free float on the jse once the listing
is concluded will be between 34.4 and 37.5%
rationale for listing
raubex has outgrown its private company status and in pursuing its intended
vision the listing will allow it to achieve the following:
greater access to capital markets
attract and retain the best talent in the industry
unlock value for existing shareholders and create value for future
shareholders
raise the company profile leading to new business opportunities
key strengths and operational advantages
the raubex group has distinct strengths and competitive advantages
considered to be the following:
an experienced management with a proven track record: the senior
executive and divisional management of raubex have approximately118
years of collective experience with the company
leading positions in attractive markets: raubex`s market presence,
scale and geographic reach of its operations gives it a clear
advantage relative to smaller, localised competitors
well established, recognised brands: raubex offers its products and
services through well-established brand names in each of the markets
in which it operates. brands such as raumix, raubex construction and
roadmac have been in existence for many years and enjoy significant
brand recognition in the industries in which they operate. the raubex
brand has been in existence for more than 30 years
balanced business portfolio: raubex has a balanced portfolio across
its lines of business and geographies. it also has a robust and
diverse customer base including government organisations throughout
southern africa
proven financial performance and stable cash flows: raubex has shown
significant growth and increased profitability over the last three
years and has an uninterrupted profit history spanning over three
decades
raubex fleet of plant and equipment: raubex group owns and operates
one of the largest fleets of road construction and maintenance
equipment and by far the largest fleet of `road reclaimers` in south
africa
continued in next article