FDC Consolidated Holdings (ASX: FDC)

Hi Jeremy,

FDC listed on Thursday and rallied ~13% on the day. MA Financial & UBS were the brokers to the issue, raising ~$400mn at $3.00/sh. Importantly, around $350mn or 87% was a secondary sell-down by existing shareholders, while only about $50mn represented new capital raised for the company. The IPO valued FDC around ~$1bn on listing.

FDC specialises in commercial fit outs and construction for blue-chip clients including Commonwealth Bank and Qantas. They’ve been around 30+ years and we were actually quite interested in this IPO, but we didn’t get stock.

 The companies’ financials look good:

• Projected FY26 revenue of $1.9bn, which equates to revenue growth of 14.3% from FY25.
• Expected EBITDA of ~$100mn while the company carries no debt.

While it will take time to see how the business performs as a listed company, overall, it’s a solid business, with solid management, and is pretty simple to understand.  On 14.2x (Est) FY26 earnings, it’s about right in our view i.e. not cheap, but not expensive either. It would be a buy in the low $3’s, rather than the mid $3’s.