Diversified equipment hire and industrial services business Waco International has kicked off an international and local roadshow as it prepares to return to the main board of the JSE after 15 years of private ownership.

Waco, which planned to list in the General Industrials – Diversified Industrials sector of the JSE on October 23, aimed to raise up to R3.5-billion to simplify the company’s capital structure, with the current preference share structure falling away.

The listing would facilitate an offer for sale of 78.6-million ordinary shares for between R36 and R45 apiece, with about 35.3-million shares sold off by existing shareholders and around 43.2-million new shares issued by Waco.

“The free float at listing is expected to be 63% and existing shareholders will retain an aggregate of approximately 37% of the ordinary shares in the company following the listing,” explained CEO Stephen Goodburn.

Waco initially listed on the JSE in 1952 and delisted in 2000 when a private equity consortium led by Ethos Private Equity acquired the group.

In 2005, the group dropped its relisting plans after being bought out in a R5.4-billion deal, but in 2012, Ethos, along with a number of new consortium partners, reacquired the firm.

“Following the listing, we will be well positioned to continue on our growth path. The momentum of this business has been exceptional over the last three years with nearly a doubling in our adjusted earnings before interest, taxes, depreciation and amortisation,” he said.

The move would enable Waco to continue its diversification plans into “new but related” product areas and into new geographic territories.

“We will have an attractive capital structure allowing us to raise capital in the future, should this be required. Bolt-on acquisitions, as well as organic growth initiatives, will continue to be part of our future agenda,” Goodburn said.

The final offer price and final number of shares to be issued was expected to be announced on October 16.