Royal Wolf Holdings Ltd
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Royal Wolf Achieves IPO of the Year from FinanceAsia

FinanceAsia reports:

It's rare for FinanceAsia to award an IPO deal valued at just A$91 million, but Royal Wolf's debut on the Australian Stock Exchange in May was a diamond in the rough - a clever piece of execution for a modest shipping container company that has traded higher since its debut despite the poor performance of the broader market. Royal Wolf priced its shares at the mid-point of the range and achieved a premium valuation of 14.1 times 2011 earnings, compared to a sector average of 11.4 times. As a small-cap, the stock is below the radar of many investors, but those who did buy it have so far been rewarded.

Introduction

Royal Wolf is a leading provider of portable container solutions to the resources, construction, logistics, retail and manufacturing industries in Australia and New Zealand¹ with a lease fleet of approximately 29,000 and average annual sales of approximately 17,000 containers as at 31 December 2010.

Royal Wolf leases and sells container products through its 23 Customer Service Centres located in every state in Australia and in the North Island and South Island of New Zealand, as well as through a National Accounts Management Team that is focused on large customers and contracts. Royal Wolf is the only provider of portable container solutions with Customer Service Centres servicing all major business centres in Australia and New Zealand and, as such, is the only portable container solutions company with a national infrastructure and workforce.

Royal Wolf's portable container products are used by a broad range of industries with over 21,000 customers² across 19 industries that include resources, construction, logistics, retail and manufacturing. Customers use Royal Wolf's products for a wide variety of applications, including storage of inventory, materials and equipment, transportation of goods, and as portable buildings and accommodation. This diversity of clients, markets and products provides Royal Wolf a degree of protection against changes in demand in an individual segment.

Royal Wolf markets portable container products in three key product segments: portable storage, portable buildings and freight.

Note: Product data as of 30 June 2010, lease fleet data as of 31 December 2010.

Royal Wolf's three product segments, portable storage, portable buildings and freight, contributed 77%, 13%, and 10% respectively of total revenue for FY2010.

FY2010 revenue by product segment	FY2010 revenue by customer sector

1. Royal Wolf has Customer Service Centres located in eight of nine major business centres in Australia as defined by Infrastructure Australia (Major Cities Unit, 2006), and services the ninth through a nearby location. Royal Wolf has Customer Service Centres located in all five major business centres in New Zealand.
2. Number of individual customers invoiced in FY2010 (excludes multiple invoices sent to same customer).
3. Products with distinctive design and construction characteristics which are only manufactured by Royal Wolf.