Civil construction company Symal Group (ASX:SYL) had a relatively quiet first day after floating on the ASX today, with the newly-listed business’ share price finishing at $1.835 – just two cents cheaper than how it originally opened.
The Victorian contractor rung the bell on the ASX at 12pm Sydney time today.
There had been some speculation investors starved of IPOs through the last year would have been eager to add a new company to their portfolio, but Symal’s debut day on the local bourse remained relatively tepid, all things considered.
By comparison, Aussie burrito slinger Guzman y Gomez (ASX:GYG) busted the markets when it floated in June with a fairly unexpected 36% leap on day one.
Today’s debutant slowly yo-yoed between $1.90 and $1.82 before settling. Through the day, 27 buyers picked up 528,065 units; 40 sent 510,821 the other way.
Over on HotCopper’s forums, the construction company saw zero comments on its threads.
Things could very easily pick up for Symal as it settles into the ASX humdrum though, with similar infrastructure and contracting companies like Alfabs Australia (ASX:AAL) and Tasmea Limited (ASX:TEA) recording their own slow starts.
Tasmea had an issue price of $1.56 when it debuted in March 2024 and now sells at $2.80 while Alfabs has climbed from 25cps in June to 34.5c a share at close.
As if on that same tune, Symal’s indicative price for Friday is already up 3%.
Big first day or no, it’s been a long road to an ASX listing for the company – which rebranded to Symal in 2020 – after founder Joe Bartolo established the landscaping venture in 2001. It expanded into concreting and construction through to 2010 and now has 11 offices across the east coast with more than 1,000 staffers.
Symal made net profits of $32.8 million in the year to June, according to its prospectus.
Mr Bartolo, who retains nearly a 70% stake in the company alongside founding shareholders Andrew Fairbairn and Ray Dando, had originally told The Australian he expected to spark interest with their listing considering so few IPOs had come through recently.
(There are now nine more booked between today and the end of November.)
The Symal founder also admitted heading into Thursday the company “never really needed to list” because it’s highly-profitable, but with the capital raise the construction company could now expand even further.
“For us, it was all about growth and building a legacy around what we’ve created,” he said.
Plans are already in motion, Mr Bartolo added. “We’re so excited about what the future brings… through organic growth and inorganic growth as well by way of acquisition.
“It’s focusing on the regions we’re already in, it’s acquiring more businesses there, it’s about taking more market share, but also a longer term strategy would be to move into other areas such as Western Australian and Northern Territory.”
Symal began trading with a $437 million market capitalisation after raising $136 million from institutional and retail investors at $1.85/psh.
The company spruiked its long list of upcoming projects before the big day, with the impending job sheet totally $1.3 billion across more than 200 projects. Symal mostly works in Victoria, Queensland, and New South Wales.
Two of Symal’s bigger projects include Eastern Freeway upgrades in Melbourne and supplying for the $600m Hunter Power Project near Newcastle.
SYL will have its first full trading day on the Aussie bourse tomorrow.
Join the discussion. See what HotCopper users are saying about Symal Group and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
