- ASX newcomer Duratec (DUR) was welcomed to the local stock exchange with open arms today, increasing in value by a fifth on its first day on the market
- The engineering and construction remediation company went public with a $53 million initial public offering (IPO)
- The company specialises in extending the life of steel and concrete structures by finding potential environmental or corrosion issues and patching them up
- Importantly, Duratec tabled around $247 million in revenue over the 2020 financial year, which translated to just over $13 million in profit after tax
- Shares in DUR tacked on 21 per cent in their first day on the market to close at 60.5 cents each
ASX newcomer Duratec (DUR) was welcomed to the local stock exchange with open arms today, increasing in value by a fifth on its first day on the market.
The engineering and construction remediation company went public by placing 48 million new shares on market at 50 cents a pop. On top of this, the company issued just under 58 million sale shares through Opal SaleCo at the same price for a total initial public offering (IPO) of just under $53 million.
By market close, DUR shares were worth over 60 cents.
Who is Duratec?
Duratec specialises in extending the life of steel and concrete structures by identifying potential issues early and patching them up.
As infrastructure ages, it becomes more and more susceptible to corrosion and environmental damage. Duratec’s focus is to protect and remediate these structures to extend the life of a business’s most important assets.
The company’s services range from asset protection to infrastructure upgrades to spatial integration and more. What’s more, Duratec already services the defence, mining, oil and gas, and industrial industries, among others.
Duratec has major partnerships with construction and geotechnical services specialist Fortec Australia and civil engineering construction business Ertech. In fact, Ertech is Duratec’s biggest shareholder, holding a 19.9 per cent interest in DUR. Ertech also has a majority shareholding in Fortec.
The company is based in Perth, WA, and is headed by Managing Director Phil Harcourt.
Show me the money
Perhaps of most interest to investors, however, is Duratec’s financial figures for the 2020 financial year.
Despite the economic uncertainty of the COVID-19 pandemic, DUR tabled over $247 million in full-year revenue during FY20 — an increase of around 23.4 per cent on FY19 annual revenue.
This translated into just over $13 million in profit after tax for the 2020 financial year, compared to the $9 million profit from the year before.
Importantly, Duratec returned over $10 million in dividends to shareholders over the 2020 financial year.
It seems investors liked what they saw in new stock on the block. DUR shares gained 21 per cent today to close worth 60.5 cents each.