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MInInG seRVIces

Services companies in demand

as market tightens

nce the domain of private and family- lion) and Aquirian Ltd ($8 million) join the allowing them to grow.”
Orun businesses, Australia’s mining ASX and while the IPO market is prov- For fellow BDO corporate finance part-
services sector has become a beacon for ing fertile for larger services companies, ner and M&A expert Todd Grover, the
international investors and public compa- smaller players are achieving just as challenges currently facing ambitious
nies with growth ambitions. lucrative valuations through corporate service companies also present opportu-
The unprecedented demand created transactions and M&A. nity for vendors looking to realise value.
by Australia’s buoyant mining and ex- “The combination of mining going “It is a very tricky market in which to
ploration sectors has driven services so strongly and the relative ease of ac- grow as many mining services compa-
companies to the top of investor wish- cessing money through public markets nies are hamstrung by labour and equip-
lists, with many of them now considering means larger services companies are ment shortages,” Grover said. “M&A be-
capital markets as the ideal platform for able to fund acquisitions,” Justin Boyce comes the best pathway to growth.”
growth. Cam, corporate partner and M&A leader WA services companies, hardened
2021 has already seen the likes of at BDO, told Paydirt. “Debt also remains by their survival through the last down-
DDH1 Ltd ($150 million), MLG Oz Ltd very cheap, and banks are aggressively turn, offer larger companies instant value
($70 million), DRA Global Ltd ($11.7 mil- lending to mining services companies,

Private to public: Services companies
cashing in on investor interest

Company Vehicle Value

DDH1 Ltd IPO $150 million
Go West Buses M&A $114 million
McKay Drilling M&A $80 million
MLG Oz Ltd IPO $70 million
DRA Global IPO $11.7 million
Aquirian IPO $8 million

aUSTRaLIa’S PaYDIRT SePTeMBeR 2021 Page 65