E-Malt.com News article: Australia: Mad Monk Micro Brewer oversubscribed in Christmas ASX listing

The 'Mad Monk' brand is set from the New Year to become the flagship beer for Australia's newest publicly-listed boutique brewery after oversubscriptions easily filled the A$1.5 million Initial Public Offer (IPO) by Oz Brewing Limited, JCN News announced December 8.

Oz Brewing will also start listed life buoyed by the passage of legislation in the WA State Parliament on Wednesday night this week, allowing the consumption of liquor in restaurants without the requirement to buy food from menu offerings.

The Company announced today it now expected to list on the ASX just prior to Christmas after its nonsponsored capital raising comfortably exceeded its A$1.5 million IPO target to establish the first "Mad Monk" microbrewery at Fremantle, south of Perth.

"While there is general recognition that lifestyle pastimes like fine beer and wine consumption are almost 'givens' in terms of business potential, the microbrewery sector is still a relatively new boy on the national liquor scene," Oz Brewing’’ Managing Director, Mr Trevor Pugh, said today.

"As entry costs for junior size brewers are relatively low, the Oz Brewing Offer, centred on our flagship Mad Monk brand and lifestyle-based brewery-brasserie complex at Fremantle, has been seen as something of a pace-setter," Mr Pugh said.

"We can now accelerate fit-out work already underway at Fremantle in order to commence trading in the first quarter of calendar 2007," he said.

"First trial brews have been produced and will be used for marketing purposes and promotional activities around the listing, ahead of moving to full production from the New Year to build up first stocks for WA and national distribution.

"Our primary focus will be on establishing brand recognition for 'Mad Monk' initially as a result of Fremantle's exceptionally high tourist traffic numbers.

"Our entry into the sector will, however, also contribute further to Fremantle's emerging reputation throughout Australia as a hub for fine beer offerings combined with dining.

"This is a real point of difference for the boutique brewery sector and Western Australia has taken a lead in dominating boutique brewing in this regard.

"Oz Brewing fits well into this niche and is set on winning significant market share."

The IPO offered up to 7.5 million shares at 20 cents each to rise up to $1.5 million with one free attaching 20 cent option exercisable in 2012 for every two shares subscribed for.

Oz Brewing will have 37.5 million shares on issue and be capitalised at listing at A$7.5 million

The Company already has plans underway to develop a second outlet at Dunsborough, the gateway to the Margaret River wine region in the southwest of Western Australia, before embarking on a concerted brand push nationally and eventually, as an export earner.

Oz Brewing has appointed well known liquor identity, Mr Richard Moroney, as head brewer.

The Mad Monk Brew Cafe and brewing complex will offer a range of premium boutique beers on premise for over-the-counter sales, in addition to the progressive development of sales of packaged product.


14 December, 2006