Five banks to manage QR National IPO

The Queensland government has appointed five investment banks to manage its $3 billion-plus float of the QR National coal, freight and infrastructure servicing business.

Queensland treasurer Andrew Fraser said Credit Suisse, Goldman Sachs JBWere, Merrill Lynch, RBS and UBS had been selected to manage the initial public offering (IPO) announced by the state government on December 8.

"The five - given their complementary capacities - give us coverage at international, national and domestic levels and also from institutional and retail perspectives," Mr Fraser said in a statement on Wednesday.

The state government is separating its Queensland Rail passenger business from its coal haulage, freight transportation and infrastructure servicing business and is preparing only the latter for public listing.

The public float is expected to be Australia's largest this year and is on track to take place in the final quarter of 2010, Mr Fraser said.

Media reports have cited a range of valuations for the IPO from $3 billion to $7 billion.

A Treasury spokesman declined to comment on the reported valuations.

After listing, QR National will be one of Australia's largest railway operators and a top 50 company on the Australian Stock Exchange.

The Queensland government will initially retain between 25 per cent and 40 per cent of the new QR National and will sell the remaining share via the IPO.

"There will be preferential share allocations for Queenslanders and employees and that will ensure that the people who have loyally supported the development of QR National get to share in its future," Mr Fraser said.