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Midway about to float on stockmarket

The country’s largest high-quality woodchip processor and exporter woodchip, Midway, is set to front fund managers ahead of a potential $250 million sharemarket listing. Source: Australian Financial Review

The Australian Financial Review can reveal analysts at Ord Minnett and Morgans will begin pre-marketing later this week, with fund managers booked for meetings in Asia, and Sydney and Melbourne next week.

It’s understood Geelong-based Midway is preparing to come to market with about $30 million in annual earnings and close to a $250 million enterprise value.

The exporter and manufacturer is majority owned by the Gunnersen and McCormack families, who are expected to retain most of their shares as part of the initial public offering.

Former Australian Bluegum Plantations boss and ex-Rio Tinto executive Tony Price will oversee the company as chief executive officer, while the McCormack’s Greg McCormack lines up as chairman.

Fund managers are likely to recognise the independent directors, which include longtime GrainCorp managing director Tom Keene and former AWB managing director Gordon Davis.

Mr Davis now sees to Primary Health Care and Nufarm as a non executive director.

The company is expected to lodge a prospectus in the middle of next month, provided it gets a good hearing from potential investors over the coming fortnight. If successful, it would list in June.

Potential investors are expected to compare Midway to GrainCorp.

The company owns wood processing and export facilities in Geelong, Portland and Brisbane and is headquartered in Geelong.

It takes processes hardwood Australian timber and exports to seven of the biggest pulp and paper producers in Japan and China.