TPG's Myer moves closer to A$3bn IPO

TPG-controlled Myer Group, which owns Australia’s largest chain of department stores, has begun an initial public offering pre-registration process. 

Analysts told Reuters the company’s listing could be worth about A$2 billion ($1.73 billion; €1.8 billion), exclusive of debt, which was about A$650 million in January.

The public offering, if successful, would mark Australia’s largest IPO since the economic downturn began. 

The company is looking to lodge Myer shares on or around 28 September 2009 with the Australian Securities and Investments Commission, it said in a full-year results statement that also detailed a 15 percent net rise in profits.

Myer did not disclose any other details pertaining to the IPO and said further information would be available in the prospectus once it has been lodged. 

In August, Reuters reported that Macquarie Group, Goldman Sachs and Credit Suisse had been selected as the lead banks for the listing

Myer’s net profits after tax for the year ended 31 July 2009 stood at A$109 million, up 14.8 percent from the previous year.

In 2006, TPG led a consortium including Newbridge Capital, its former Asia affiliate which it later subsumed, and the Myer family office to acquire the Myer retail business for A$1.4 billion.

Myer has 65 stores across Australia. Its business strategy focuses on four main categories: womenswear, menswear, cosmetics and soft home furnishings. It also sells electrical goods, furniture, childrenswear and toys.

Currently, TPG and Blum Capital, which also had a stake in Newbridge, have a combined stake of 84.2 percent in the company, according to Reuters.