Completion of Napier Port IPO Good for Hawke's Bay
20 August 2019
The Hawke’s Bay Regional Council says the successful completion of the initial public offer (IPO) of shares in Napier Port, is good for the future of the Port, the Hawke’s Bay region and the Regional Council.
Shares in Napier Port started trading on the NZX at 11.30am today.
Regional Council Chair, Rex Graham says the IPO of Napier Port satisfied the objectives that the Regional Council set at the start of the process.
“We’ve secured the funding that Napier Port needs to invest in its future growth for the benefit of our region, including our primary producers, exporters and importers,” says Mr Graham.
“We’ve protected ratepayers from the costs of Port development, retained majority ownership and control of a key strategic regional asset, and diversified the Regional Council’s income streams to better manage risk on behalf of all ratepayers.”
Rex Graham says the Council welcomed the strong local support for the Napier Port IPO.
“Hawke’s Bay locals told us local ownership mattered to them and we’re delighted with the support shown through the priority share offer. While the IPO was heavily oversubscribed, 20 per cent of the shares on offer went to priority groups – locals, iwi, Port staff and non-resident ratepayers – and almost 90 per cent of Hawke’s Bay locals received the full number of shares they applied for.
“Almost every Port employee (97 per cent) participated in the staff priority offer and there was welcome participation from local iwi. We now have a Port with a more diverse ownership structure, a strong ownership contingent of Hawke’s Bay locals and, at listing, Napier Port is approximately 90 per cent kiwi-owned.
“The listing of Napier Port today is a win-win result. It puts the Council in a strong financial position, enabling us to protect ratepayers from Port development costs and enabling it to focus on its work as the region’s primary environmental agency,” says Mr Graham.
“This whole process has been incredibly thorough, and it has taken more than two-and-a-half years to reach this point. I’d like to thank all of the Regional Councillors for their work on this process, as well as our staff, independent advisors and team at the Port.
“I’d like to acknowledge the support of all new investors in Napier Port. The Regional Council is committed to letting the Port’s Board and management team get on with running a strong, safe, profitable operation for the benefit of Hawke’s Bay and all shareholders.”