SYL Is demand for infrastructure stealing tradition from housing? This CEO Says Yes

The Melbourne-based founder and managing director was in Sydney last week, standing in the stock market to ring the famous bell to mark the debut listing of his business.

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Symal began trading on the ASX on Thursday under the SYL ticket with a market capitalization of $437 million after raising $136 million from institutional and retail investors at $1.85 per share.

“For us, listing was about growth, legacy and creating something we never want to lose,” Bartolo says. “Being on the list allows us to continue on this path and continue to grow and outlive us.”

It was one of about 20 companies to float on the stock market in 2024, but hopes are growing that a three-year drought in initial public offerings is finally coming to an end as the Australian market rides the wave of a strong Wall Street. and expects a reduction in the cash rate next year.

Bartolo cites the performance of Guzman y Gomez, which listed in June, as evidence that now is the right time to list its business on the ASX.

“There was also a lack of construction business or materials supply business in the IPO market, so we felt like we could really fill that void that was there, but also we still own 70 percent of the business, so for us it’s really it didn’t matter what the outcome was in terms of valuation because we still didn’t get the potential benefit,” he says.

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“The timing was perfect and from a workflow point of view… someone has to do something to open the market again. If you keep waiting, the question will always be, “Can we be the first to light it and benefit from it?”

It’s been a challenging time for IPOs in Australia, with the pace at the weakest in 15 years, with higher global inflation (which has only just begun to decline) and high interest rates dampening economic sentiment and companies finding it easier than ever. or, conduct an IPO. get a private loan. The US, UK and Canada are also seeing weak listing rates after peaking in 2021.

EY capital markets leader Paul Murphy says there were signs of stability in the market in the second half of this year, with a number of IPO candidates dusting off their prospectuses. Up to a dozen companies are expected to list on the ASX over the next six weeks.

“We expect investor sentiment to improve, depending on the geopolitical situation and better macroeconomic conditions, with lower inflation and possibly the start of monetary easing, which should create the right conditions for business growth, consumer demand and stable cost-push inflation.” – said Murphy.

“This is likely to benefit a number of sectors and small business IPOs.”

Symal, which has about 1,000 employees, earned $770 million in revenue and posted a net profit of $33 million in fiscal 2024, according to the company’s prospectus. The company has $1.3 billion in backlog, 90 percent of which is from existing clients across 200 projects.

A quarter of the group’s revenue comes from the public sector, including government departments and agencies at three levels of government. Current projects include upgrades to the Eastern Freeway in Melbourne’s east and a gas-fired power station at Kurri Kurri, NSW.

Bartolo attributes his company’s success to Andrew Fairbairn and Ray Dando, directors of strategy, growth and execution, who joined him 15 years ago. Fairburn and Dando own 15 percent of Symal’s shares, while Bartolo is the largest shareholder with 30 percent.

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