Mayfield Childcare is operating in the childcare industry, one that many Australians know intimately and that has grown by 11.7% annually over the last five years. The offer is open until November 18 with an expected listing date of November 28. The indicative market capitalisation of the company post-listing is $30.01 million, with an implied forecast dividend yield for CY 2017 of 7.65%.

Dean Clarke, CEO of the Company said: “Mayfield provides care for children between six weeks and six years of age and since the number of Australian children is growing just as female workforce participation is increasing, Mayfield Childcare is in a great place to take advantage of the growth opportunities these trends present.”

“We think it important to give every Australian investor, not just a select few, the opportunity to take advantage of this growth story. Our partnership with OnMarket reflects that.”

“Considering 37% of our members are so-called Millennials, or Gen Y, the fact that Mayfield Childcare has made its IPO available OnMarket also gives this generation the opportunity to invest in an industry that is relevant to them,” said Rosie Kennedy, a Managing Director at OnMarket.

Peter Lowe, Chairman of Mayfield Childcare, said that the company has assembled a management team with deep understanding of the sector that will be important to facilitate the growth plans of the company that include both optimizing existing childcare centres and acquiring additional ones.

“Centralising operations and management will increase efficiency and quality of care,” he said. “The majority of Mayfield’s Centres are within a 160km radius of the Melbourne CBD, which not only allows us more flexibility in staffing, rostering and management but also takes advantage of the demand for childcare in high-density residential areas so this is a great place to be,” Lowe added.

Mayfield Childcare will derive the majority of its revenue from a combination of the daily fees paid by parents and government subsidies. The company’s revenue for CY17 is forecast to be $29.0m, with a forecast NPAT for CY17 of $3.5m, giving the offer a forecast CY17 price to earnings (P/E) multiple of 8.5x.

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