Originally Posted by
Balance
Ok, it's clear you have no idea how private equity deals work so watch the numbers dance for your pleasure.
$275m was funded by capital/equity of $78m and debt of $197m.
The PE investors received $316m from IPO = $426m less listing fees of $15m & KMD received $85m.
$316m divided by $78m = 300%+ profit.
Tea leaves were easy to read if you care to read carefully. The ozzies loved this IPO and KMD made KMD an index stock in both ASX and NZX, ensuring after market support. After the disappointment of Myer, KMD was going to be priced by the institutions 'cheap'.