Listed engineering services business SRG Global is jockeying for investor attention just as Thiess gets ready to take MACA off the ASX boards.
Street Talk.  Bloomberg
SRG Global’s teed up a non-deal roadshow for this week via Shaw and Partners, looking to get some face-time with Sydney fund managers just as MACA looks like its being snapped up.
Street Talk understands Shaws had lined up about eight meetings for SRG’s executives while they are in town for less exciting, everyday business.
Investors are only too happy to hear from listed engineering services businesses. They are among the rare sectors in green this year, but tragically, also in short supply on the ASX boards.
However, fundies know all too well that a non-deal roadshow is often just the warm-up session to something – a raising and/or some M&A.
In SRG Global’s case, investors reckon there’s no way it needs to raise for everyday operations.
It was already up to $646.5 million revenue for the 2022 financial year, and has been winning contracts left, right and centre for its offering in asset maintenance, engineering and construction, and mining.
The balance sheet had $59.3 million cash at June 30, a healthy amount for a company $309 million market capitalisation.
And so, investors reckon there’s the odd chance that SRG’s found something it likes enough to buy, or its just putting itself on shareholders’ radars.
The latter’s likely the right reason. SRG’s growing strongly and has contracts with blue-chip clients, but it is also sparsely traded and a long-way off the multiples that its bigger comparable Monadelphous trades at.
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