Tutt Bryant floats to expand
18 April 2008
Australia: Crawler crane rental house Tutt Bryant Group Ltd (formerly Tat Hong Rental) plans to use an AUS$25 million (US$18.27 million) public floatation to expand into larger construction equipment rental.
Tutt launched an initial public offer (IPO) listing on the Australian Stock Exchange (ASX) on December 15, under which it will gain more independence from its Singapore-based parent, Tat Hong Holdings Ltd.
Tutt Bryant managing director David Haynes said the IPO would reduce the company's reliance on Tat Hong, which has invested more than AUS$70 million ($51 million) in Tutt since 1996. “For us to go any further without them [Tat Hong] throwing more money into us, we have got to start standing on our two feet,” Haynes said. “It will allow us to go to the marketplace and control our own destiny and start seeking funding and getting our balance sheet into good order.”
Tat Hong will retain a 70% stake in Tutt after its listing on the stock exchange.
In the next six to nine months Tutt plans to increase its crawler fleet from 90 units at five depots to more than 100 units, and widen its range of non-crane heavy construction machinery. It will also set up a project services division, combining crane rental and transport services, as a one- stop shop for major projects.
“We're looking at going into the bigger end of the market,” Haynes said. “We have positioned ourselves to take advantage of the resources and construction growth that has happened.”