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

 


Methven Confirms NZSX Listing $36 Million Offer

Methven Confirms NZSX Listing and $36 Million Offer

Auckland-based tap, showerware and valving designer and manufacturer, Methven Limited, today confirmed plans to list on the NZSX market after it has completed a $36.2 million initial public offering. The offer is for 25.3 million new and existing fully paid ordinary shares at an issue price of $1.43 per share and will open on Monday 8 November.

Methven has a leading share of the New Zealand tap and showerware market and has been growing steadily into Australia since its current owners acquired the business in an AMP Capital backed management buy out in 2001.

The company's leading market position is based on innovative products such as its Fastflow shower mixer. Its recently released SatinJet shower technology is expected to strengthen this position. These products perform well in the low hot water pressure systems found in most New Zealand homes and, in the case of SatinJet, in situations where water conservation is important.

Methven’s product performance has earned the company strong support from local plumbers and merchants and also offers international growth potential. Methven managing director and group CEO, Rick Fala, says the company's success is largely due to its fluid dynamics expertise and its design and innovation focus.

"Methven spends around 5% of its revenue on product, process and international market development,” he said.

Methven has established itself in Australia through the introduction of domestic water control valves in 2001 and through the 2003 acquisition of a showerware supply business, now trading as Methven Australia. Methven Australia provided the platform for launching selected tapware ranges in Australia earlier this year. Around 35% of Methven Group turnover is generated in Australia.

“We are excited about the recent release of SatinJet and the range of other products we have under development, aimed at enhancing the shower experience. SatinJet provides a unique shower experience while also performing well at low water flow rates allowing water and energy savings which will be an important differentiator, particularly in Australia," says Mr Fala.

Money raised in the offer will enable existing shareholders to reduce their holdings to 50% of the post listing value of the company and will fund the acquisition of the 40% minority interest in Methven Australia.

The public offer features a special priority pool of 1 million shares for registered plumbers whom Methven will contact in writing.

“Plumbers are a key customer group for us and we want to give them an opportunity to become Methven shareholders. To our knowledge this is the first time a public offer has had a special priority pool of this nature,” said Mr Fala.

Methven chairman, Richard Cutfield, says that listing is the logical next step in the company’s development.

"The Methven business has been operating for 118 years but has grown significantly since the management buyout in 2001. Since this time Methven has become more focused on leveraging design to expand its core tap, showerware and valving business in New Zealand, Australia and further afield," said Mr Cutfield.

"The company has a motivated team of senior managers who, together with AMP Capital, will continue to retain a significant stake in the business and its future. However, it is now appropriate for existing holders to realise some of their investment and allow the public to share in the expected future returns of the company”.

"The acquisition of the remaining 40% of Methven Australia will enable Methven to capture all the benefits of expansion into Australia. Methven Australia’s selling shareholders have elected to commit a large proportion of their sale proceeds to subscribing for shares in the offer. We see this as a strong vote of confidence,” he said.

Lead manager to the offer and NZSX listing is ABN AMRO Craigs. A registered prospectus and investment statement will be available on Monday 8 November, from their offices.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news