MGH - MAAS Group Holdings

[finicky]

Something to do with the prospects for the company that turned you off Miner? Or just the price performance. I am still considering a small buy.

 

[Miner]

Something to do with the prospects for the company that turned you off Miner? Or just the price performance. I am still considering a small buy.

Nothing technical. I needed cash so unloaded the ones, which were reasonably green on the portfolio.

 

[finicky]

so unloaded the ones, which were reasonably green on the portfolio.

You made a profit on MGH?

 

[Miner]

You made a profit on MGH?

Yes

 

[finicky]

Pullback today on EBITDA earnings guidance adjustment for FY23
Lower limit of their predicted EBITDA range maintained and this amounts to 20% growth over FY22.
Upper limit of predicted range reduced.
Chartwise, so far, it just has the appearance of a retracement, albeit a sharp one, after a higher high?

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DAILY

 

[finicky]

MGH @ 2.46 currently.

MGH down 6c (2.4%) intraday, a bit worse than the ASX300 on a down day, but on the usual low volume. It's turned out a bit more than a normal retracement as opined above and I'm considering a bid for a first nibble @ 2.40 - the last short term low. Then maybe an add down @ 2.25, if it gets there and the candles look auspicious, as a punt on a double bottom. I've come back to MGH a few times over the last year as a seemingly attractive prospect as it gets cheaper price wise (not necessarily cheap by intrinsic value, only a chart follow)

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ALL DATA WEEKLY

 

[finicky]

Market responding well to MGH's full year result today, up 9% intraday.
Seems a bit risky buying, considering about 65m shares come out of escrow tomorrow Aug 18. I guess most of those would be owned by the founder/M.D Wes Maas though and unlikely to be dumped?
Only a shade improvement of bottom line cf FY22 - see EPS highlighted. Shares have been increased from 297m at FY22 to 329m at last notice due to acquisitions.

Not Held

 

[Dona Ferentes]

a good 6 months, and there has been a bit of interest recently.

ex dividend yesterday

 

[finicky]

Another corrective WW low that I missed.
Trending, but barely fairly priced imo, so not currently attracted.

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DAILY

 

[Dona Ferentes]

...and expected to be raising $125 million to fuel the company’s acquisition-driven expansion strategy, with shares to be offered at $4.65 apiece.

Investors said Maas Group was paying around seven-times earnings for three businesses: one in Albion Park, NSW; another on the western side of Melbourne; and a third in Canberra.

 

[Dona Ferentes]

The Placement will be conducted at a price of $4.65 per share, reflecting a 1.1% premium to the last traded price of $4.60 .

- The Acquisitions will be partially funded by an Institutional Placement of up to $100m together with existing cash and available debt facilities.
- MGH is also undertaking a Conditional Placement to certain Directors of MGH (or entities associated with them) and other Founding Shareholders and executives of MGH to raise up to a further approximately $28m.
- Following completion of the Institutional Placement, the Company will also offer an underwritten SPP to eligible Australian and New Zealand shareholders to raise $10 million.

 

[JonnyBubbleWrap]

newsRush.ai

newsrush.ai

MAAS GROUP HOLDINGS LIMITED​

Proposed issue of securities - MGH Share​

Announcement Type: Capital Raising Proposal​

---

28 November 2024 12:43 PM. Open PDF | 5 Pages

Maas Group Holdings Limited (MGH) proposes to issue 43,010,754 ordinary fully paid shares at AUD 4.65 per share on December 4, 2024, primarily to fund acquisitions and enhance its financial capacity for growth.

Summary​

• Maas Group Holdings Limited (MGH) announced a proposed issue of 43,010,754 ordinary fully paid shares.
• The issue price is AUD 4.65 per share.
• The proposed issue date is December 4, 2024.
• The total number of securities to be issued is 43,010,754.
• The funds raised will be used to partially fund acquisitions and enhance the company's financial capacity for growth.
• Macquarie Capital (Australia) and Morgans Corporate Limited are acting as lead managers/brokers.
• A fee of 2.00% of the gross proceeds plus an incentive fee of 0.50% (at the company's discretion) is payable to the lead managers/brokers.

Sentiment​

Score: 7
Explanation: The announcement reflects a proactive approach to growth through acquisitions, which is generally positive. However, the dilution of existing shares and inherent risks associated with acquisitions temper the overall sentiment.

Highlights​

• Proposed issue of 43,010,754 ordinary fully paid shares
• Issue price: AUD 4.65 per share
• Proposed issue date: December 4, 2024
• Funds raised will be used for acquisitions and growth initiatives
• Lead managers/brokers: Macquarie Capital (Australia) and Morgans Corporate Limited
• Fees payable to lead managers/brokers: 2.00% of gross proceeds + 0.50% incentive fee (discretionary)

Positives​

• Securing additional capital to fund acquisitions and growth.
• Engagement of reputable lead managers/brokers (Macquarie Capital and Morgans).

Negatives​

• Dilution of existing shareholder ownership.

Risks​

• The success of the acquisitions funded by the capital raising is not guaranteed.
• Market conditions could impact the success of the capital raising.
• Potential for unforeseen expenses related to the acquisitions or capital raising.

Future Outlook​

The capital raising will partially fund acquisitions announced in an investor presentation and enhance the company's financial capacity for growth and other near-term acquisition initiatives.

Industry Context​

This capital raising is consistent with industry trends of companies seeking to expand through acquisitions and capitalize on growth opportunities. The engagement of Macquarie Capital and Morgans suggests a degree of market confidence in the company's prospects.

Next Steps​

• Completion of the proposed share issue on December 4, 2024.
• Use of proceeds to fund acquisitions and growth initiatives.

Key Dates​

• 28/11/2024: Date of announcement
• 4/12/2024: Proposed issue date

 

[galumay]

Not a great look when they were buying back shares at nearly $5! Too much debt for my liking, and now dilution. I reckon its a reasonable business, but roll ups are always a bit of a risk. Wes Maas is a hell of an operator though, so maybe he can make it work?
If it wasnt for the debt I would probably talk myself into owning it!