Company Overview

Ventia Services Group Limited  (ASX: VNT) is one of the largest providers of infrastructure services in Australia & New Zealand. The Company was founded in 2015. The Company provides minor capital works, operations and maintenance, asset management and facilities management.

Initial Public Offering

The company had launched its IPO on November 03, 2021, under the ticker VNT at AU$1.70 each. We had covered this IPO in our ‘Kalkine IPO Report’ on November 03, 2021 and concluded that this IPO was “Attractive” given its superior earnings quality, strong balance sheet, and operating in a rapidly growing market backed by several growth catalysts for demand drivers.

Hourly Price Chart (as on December 1, 2021). Source: REFINITIV, Analysis by Kalkine Group 

Conclusion

Investors who have invested into this IPO can consider ‘Exiting’ from their position at the closing price of AU$2.05 as on December 1, 2021, given:

• Decent gains: The stock has moved up ~21% from its IPO price of AU$1.70/share and has given a decent return in a shorter time duration.
• Resurgence of COVID-19 cases: Increasing COVID-19 cases in Europe and other parts of the world is throwing a lot of uncertainties in the global financial markets. Also, real estate business could witness labour shortage, slowdown in project rollout and supply chain related problem in the near-term.
• Inflationary pressure: The sharp rise in the basic material prices (steel, copper, aluminum, lumber) could suppress margin profile of the company in the upcoming quarters.

*The reference data in this report has been partly sourced from Refinitiv.