By Paulina Duran
SYDNEY (Reuters) - Brookfield Asset Management (TO:BAMa) plans to raise at least A$656 million ($477 million) in the initial public offering of its Australian coal export terminal in which it will sell a 51% stake, according to a term sheet seen by Reuters.
The company, Dalrymple Bay Infrastructure (DBI) (ASX:DBI), will offer an annual dividend yield of 7%, the term sheet said. Selected investors had been previously offered more than 5.5%.
Brookfield's minimum target of A$656 million for the planned sale of 255 million shares works out to A$2.57 per share.
Bids from institutional investors are due next Wednesday. A prospectus for retail investors is expected to be filed with the corporate regulator on Friday Nov. 20, followed by an auction for retail investors starting Nov. 30.
Brookfield representatives declined to comment. DBI did not reply to an email seeking comment.
It is likely to be Australia's second biggest IPO this year, behind the expected listing of Macquarie Group 's (AX:MQG) majority-owned software provider Nuix, which is seeking to raise about A$900 million.
DBI is expected to have an enterprise value of A$3.07 billion which includes net debt of A$1.78 billion, the term sheet said.
About half the proceeds will go to Brookfield, with the rest going towards the repayment of debt and transaction costs.
Queensland state, where the coal export terminal is located, has agreed to buy a 9.9% stake in DBI for A$128 million, the term sheet said.
Brookfield plans to sell a third of its remaining 49% stake after DBI announces 2021 first-half earnings and the remaining two thirds of the company in two stages following the subsequent half yearly results.
The IPO - which was put on hold earlier in the year because of the coronavirus pandemic - is being managed by Merrill Lynch, Citigroup (NYSE:C), and Credit Suisse (SIX:CSGN), alongside retail brokers Bell Potter, Wilsons, and Ord Minnett.
($1 = 1.3738 Australian dollars)