Initial public offering hopeful Link Group has been given an enterprise value as much as $3.04 billion by Macquarie Capital, according to The Australian Financial Review (AFR).
That would not only make it the biggest public float of the year, it would likely also provide the best window into the health of the IPO market investors have been given since Myob Group Ltd's (ASX: MYO) ASX debut, or even since Medibank Private Ltd (ASX: MPL) went public in November last year.
Link Group is a global financial technology company comprised of four divisions. It is one of Australia's largest superannuation administration providers while it also provides share registry and investor relations services across the globe. Meanwhile, it provides data and digital services, together with property services that allow various parties to manage property transactions online.
While an obvious comparison may be between Link Group and Computershare Limited (ASX: CPU), which also provides share registry services, the AFR reported that fund managers are being asked to compare the group to Iress Ltd (ASX: IRE) and Veda Group Ltd (ASX: VED), as well as the NASDAQ-listed SS&C Technologies Holdings.
With Link Group expected to post a net profit of around $95 million in fiscal 2016, it could hit the ASX boards with a price-earnings value north of 28x future earnings. That compares to an estimated 20x future earnings for Veda Group, and 25x future earnings for Iress, according to estimates from Morningstar.
Link Group's joint lead managers will embark on a roadshow to market the business, with an IPO possible before the end of the year.
