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


17 public offerings raised $774 million

Wednesday, 20 April 2005

17 public offerings raised $774 million

The 17 initial public offerings (“IPOs”) completed in New Zealand in the 12 months to 31 December 2004 raised a total of $774 million (excluding overseas, compliance and back-door listings), according to the first annual PricewaterhouseCoopers Survey of IPOs 2004, released today.

The amount raised in 2004 was higher than the combined total of $641 million raised in the years 2000–2003. Aside from the 1999 Contact Energy IPO which raised $1.1 billion, 2004 saw the highest level of funds raised by way of IPOs in the last decade.

PricewaterhouseCoopers Corporate Finance Partner David Bridgman said the number and size of the floats in 2004 was driven by the strength of New Zealand’s capital markets. “The resurgence in IPO activity that we’ve observed in 2004 is a reflection of the performance of NZ stock market which has been one of the world’s strongest performing sharemarkets over the last two years,” he said. “The benchmark NZX Composite Gross Index [measuring both capital appreciation and dividends] has increased by 62% over the last two years.”

Pumpkin Patch tops shareholder returns for IPO Class of 2004

The listing premium (or ‘stag profit’) for companies that listed on the NZSX averaged 8% in 2004, ranging from -6% for Mike Pero to +28% for Team Talk. For IPOs exceeding $100 million, listing premia were in the range from -3% for Feltex to +10% for Pumpkin Patch.

David Bridgman said Pumpkin Patch was the standout performer for shareholders among the new 2004 listings. “Pumpkin Patch generated a total shareholder return [capital appreciation plus dividends] of 121% in the period between its initial listing in June 2004, and 31 December 2004,” he explained. “Team Talk, Kingfish, Canwest and NZ Finance all performed well and generated total shareholder returns of better than 20%.”

Alternative market IPOs

There were four IPOs on the NZX’s Alternative Market (NZAX), raising a total of $21.4 million. The largest IPO was for Just Water International which raised $8.25 million. Other companies to raise funds by way of IPO and list on the NZAX in 2004 were Solution Dynamics, Southern Travel Holdings and Eastern Hi Fi Group. The best performed NZAX stock was Just Water International which had a share price at 31 December 2004 of 80 cents, 60% higher than its issue price of 50 cents in June.

Outlook for 2005

According to David Bridgman the outlook for IPO activity in 2005 is more subdued, although the partial float by Vector looms large. “We’re seeing very keen purchaser interest from both trade and financial buyers across virtually all sectors,” he said. “This may provide an attractive alternative to an IPO for vendors, particularly those who which wish to sell down 100% of their interest in a company. However if Vector’s partial float proceeds then there’s a good chance the level of funds raised by IPOs in 2005 will come close to the $774 million we’ve seen this year.”

About PricewaterhouseCoopers: PricewaterhouseCoopers ( is the world’s largest professional services organisation. Drawing on the knowledge and skills of more than 125,000 people in 142 countries, we help our clients solve complex business problems and measurably enhance their ability to build value, manage risk and improve performance. We source global knowledge but importantly we have a local presence. We build relationships by providing services based on quality and integrity.

(“PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.)


© Scoop Media

Business Headlines | Sci-Tech Headlines


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>>


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>>


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>>


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>>


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>>