Australasian accommodation website Wotif.com has lodged a prospectus with the Australian Securities and Investments Commission to seek a listing of its shares on the Australian Stock Exchange in an initial public offering (IPO).

Published: 24 Apr 2006

Australasian accommodation website Wotif.com has lodged a prospectus with the Australian Securities and Investments Commission to seek a listing of its shares on the Australian Stock Exchange in an initial public offering (IPO).

The company shared that Graeme Wood, Wotif.com’s chief executive officer and managing director, will retain a 25.1 percent shareholding in the company post IPO.

Under the IPO, a total of 85.984 million shares are being offered for sale by Wotif.com’s existing shareholders, representing approximately 42 percent of the company’s issued capital.

The remaining 58 percent of the company will be retained by its existing shareholders.

“The offer price is to be set through an institutional bookbuild within a pricing range of $1.75 to $2.00 per share. Based on the midpoint of this range, the offer size is approximately $161 million and Wotif.com’s market capitalisation will be approximately $381 million. The proceeds of the offer (net of the offer costs) will be received by the selling shareholders,” stated the company.

Wood said, “We have a low-cost, highly focused business model which has consistently generated strong revenue and earnings growth since the company commenced operations. We are the Australasian market leader in the online accommodation industry processing approximately 36 percent of all online accommodation sales in Australia and 18 percent in New Zealand.”

According to the company, in FY2005 Wotif.com reported revenue of $32.1 million and the Board of Directors is forecasting revenue in FY2006 and FY2007 to increase by 41% (to $45.3 million) and 23% (to $55.8 million) respectively. On the basis of these forecasts the company expects to produce NPAT of $15.7 million and $19.1 million in FY2006 and FY2007.

The site provide customers with access to competitive rates in the next 28 days, at more than 4,000 properties in Australia and New Zealand, and more than 7,000 properties worldwide. The site attracts almost two million user sessions and processes over 110,000 bookings each month. Accommodation can be booked online or through Wotif.com's Customer Service Centre.

Wotif.com is based in Brisbane, has offices in New Zealand, the United Kingdom, Singapore, Malaysia and Canada, sells accommodation online in over 35 countries and employs 135 staff.