Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Feltex Share Offer Price Set at $1.70 per share

24 May 2004

Feltex Share Offer Price Set at $1.70 per share

Feltex Carpets Limited has today announced that the final price of Shares in its Initial Public Offering (“IPO”) has been determined.

The final price has been set at $1.70 per Share. At the final price, Feltex will have a market capitalisation of $254 million making it the largest IPO of a New Zealand company since 1999. It will also place Feltex within the top 30 listed companies.

“We’re delighted the Feltex IPO has been so well received in the market. The level of retail investor interest in the offer has been excellent and the book build attracted good support from a range of domestic and international institutions and Primary Market Participants”, said Feltex chairman Tim Saunders.

“At the final price of $1.70 per share, the Shares are projected to provide a gross dividend yield of 9.6% for the year ending 30 June 2005. As well as providing investors with an attractive FY2005 projected gross dividend yield, a dividend of six cents per share is projected to be paid in October 2004 in respect of the year ending 30 June 2004,” said Feltex chief executive officer Sam Magill.

The offer of Shares pursuant to firm allocations from Primary Market Participants (NZX Firms) does not close until Wednesday, 2 June 2004. Under the offer structure, potential investors can now purchase shares at the fixed price of $1.70 per share via certain Primary Market Participants.

Mr Magill said: “We’re very pleased with the success of the Offer process to date. We’ve had excellent feedback from New Zealand retail brokers and their clients as well as from other investors. The company will have a strong and diverse share register”.

“The very attractive dividend yield on our shares when compared to recently announced IPO's and the general market provides investors with a real opportunity to acquire an investment with an excellent projected income flow priced at an attractive P/E (pre-goodwill amortisation) multiple of 9.8x”.

Credit Suisse First Boston Asian Merchant Partners, L.P. has owned the business for more than seven years, during which time it has expanded the company through the purchase of Shaw Industries Australia in 2000 into a leading Australasian carpet manufacturer and marketer.

Feltex Carpets’ Shares are expected to be listed on the NZSX on 4 June 2004. Mr Magill said: "I am looking forward to seeing Feltex shares successfully listed as a prominent public company in New Zealand. The company is excited about its future and the listing is a further important milestone for Feltex."

First NZ Capital and Forsyth Barr acted as Joint Lead Managers to the Offer.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>

ALSO:

Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>

ALSO:

Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>

ALSO: