November 20, 2014 / 6:53 AM / 3 years ago

Bain Capital hires advisers for $2.6 billion IPO of Australia's MYOB: source

SYDNEY (Reuters) - U.S. private equity giant Bain Capital hired Reunion Capital Partners to advise on a listing of Australian accounting software firm MYOB Ltd worth up to A$3 billion ($2.58 billion), a source familiar with the deal said.

Bain is also expected to hire Bank of America Merrill Lynch, Citigroup (C.N), Goldman Sachs [GSGSC.UL] and UBS AG UBSN.VX to run what would be one of the country's biggest initial public offerings of 2015, said the source who could not be named because of the sensitivity of the arrangements.

The listing is expected to take place in the first quarter of calendar 2015, and the A$3 billion market capitalization includes a significant stake in the company which Bain plans to keep, the source added.

Bain was not immediately available for comment.

Bain had been widely reported to be seeking an exit from MYOB for months, but the appointment of boutique financial services firm Reunion and the expected appointments of joint lead managers confirm that the Boston-based investor has settled on a timetable and picked a share market listing over of a private sale.

It also signals continuing support for Australian IPOs following strong performances from large listings like that of hospital operator Healthscope Ltd (HSO.AX), which raised A$2.25 billion and has seen its shares rise 18 percent since July.

Even larger health insurer Medibank Private Ltd (MPL.AX), which is scheduled to list on Nov. 25 with an expected market capitalization of more than A$5.5 billion, upped its share price target following high demand.

The MYOB listing, if it values the firm at A$3 billion, would represent a more than doubling of Bain's investment after it bought the company from Australian private equity firm Archer Capital for A$1.2 billion 2011.

In August, MYOB reported earnings before interest, tax, depreciation and amortization grew by 29 percent to A$70 million for the six months to June 30, as revenue rose 21 percent to A$140 million. The company did not give forecasts.

MYOB and Reunion were not immediately available for comment. Goldman Sachs, UBS and Citigroup were unavailable for comment while Bank of America Merrill Lynch declined comment.

Editing by Stephen Coates

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