Holiday home manager Alloggio set to be acquired less than 2 years post-IPO for a hefty premium
Nick Sundich, March 27, 2023
Alloggio (ASX:ALO) has only been listed on the ASX since November 2021 but its tenure is set to end after less than 2 years. The reason is a takeover bid from Next Capital that Alloggio’s board has fully endorsed.
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Alloggio an underrated travel stock
Alloggio has missed out on the travel boom most other stocks have.
It has two businesses: one runs holiday homes, units and apartments on behalf of homeowners and lists them on third-party online travel agencies such as Airbnb, the other manages mid-market hotels which tend to be at coastal areas.
Being closer to home, it recovered faster than companies exposed to overseas markets, but missed out on the benefit of the travel boom in 2022.
Allogio (ASX:ALO) share price chart, log scale (Source: TradingView)
Next Capital likes it
Private equity firm Next Capital has made a bid for the company at 30c per share, a deal valuing the company at just over $60m. The board has unanimously recommended the offer, noting it provided the certainty of value and the attractive premium – both to Friday’s closing share price and the EV/EBITDA multiple it represented (namely 9.8x).
Not only do ALO’s founders Will Creedon and Karen Howard, who hold a 28.9% collective stake, support the bid but so do HD Capital and Microequities which hold 7.4% and 5.81% respectively. The latter’s support is critical, having effectively killed off a takeover bid for Readytech a few months ago.
The deal is expected to be voted on in July.
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