Heres a clipping of some info. I haven't pasted finanical numbers as I can't paste tables here. Raubex Sale of 55.8m shares in Raubex at a price between 1350cps and 1500cps prior to listing. Very little information: not even forecasts for financial year ending February 2008. Raubex is basically an infrastructure development company focusing on road construction. There are three divisions: Raubex Construction< Road Construction> Raodmac Raumix Some 6% of revenue generated from projects outside SA. Both Raubex construction and Roadmac seem to be part of the "top" road-building companies, which are active in SA. Construction related companies are in a very enviable "sweet" spot and general consensus is that this situation will at least last for another 5 years. In the recent past, construction companies have gone through some very lean times. Especially road builders suffered due to a lack of government spending on roads. Group 5 almost completely shut down its road division due to lack of sufficient work and he risk attached to cross-border work. Now a catch-up situation is developing: spending is taking off. But road building capacity has been reduced, which should make road building contracts a lot more attractive than in the past. In short, most construction companies' bottom lines should be boosted by higher volumes (sales) and better margins. Recently there have been two well publicised recent market transactions in similar companies: Quarry Cats was a company recently acquired by Group 5 for R750m. The company consists of three divisions: aggregates (quarries) 3m tpa contract crushing (dumps) 7m tpa ready mix concrete 400 000cum pa Afrimat was a recent listing. The shares were placed at 500cps but trade now at 930cps. The company focuses on aggregates, ready mix, concrete products and bricks. Considering the unique positioning of Raubex, the pricing in terms of P/E does not look excessive, even at an offer price of 1500cps, when compared to Quarry Cats and Afrimat.
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