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

 


Scales Prospectus Registered

Scales Prospectus Registered

An investment in New Zealand’s primary industry Investors will soon be able to own a stake in Scales - a large, diverse and growing New Zealand agribusiness group.

Christchurch-based Scales Corporation Limited today registered a prospectus for the initial public offering of ordinary shares in the company. The prospectus and the investment statement for the IPO is now available at www.scalescorporation.co.nz.

Scales operates three divisions, Horticulture, Storage & Logistics and Food Ingredients. Scales’ Horticulture business includes Mr Apple, New Zealand’s largest fully integrated grower, packer and marketer of apples.1

Through its Storage & Logistics business, Scales has been providing essential services to the New Zealand primary sector for more than 100 years. Scales is an established market leader across all its businesses with solid customer relationships, efficient operating systems and an experienced management team.

The IPO comprises an offer of up to 100.8 million ordinary shares. The offer will raise up to $30 million of new capital which will provide Scales with flexibility for the future expansion of its business.

As part of the IPO, majority shareholder Direct Capital Investments Limited will sell down from its current 84 per cent shareholding, but together with its co-investors the New Zealand Superannuation Fund and ACC, will retain a cornerstone shareholding of 20 to 30 per cent in Scales following the IPO.

An indicative price range has been set at $1.60 to $1.85 per share. Based on the indicative price range, the company’s market capitalisation will be between $221 million and $251 million.

Based on FY2013 total own-grown and exported TCEs.

The final offer price is expected to be set on July 4 at the completion of a book build involving New Zealand brokers and institutional investors. Shares are expected to begin trading on the NZX Main Board on 25 July.

Scales Corporation chairman Jon Mayson says the offer is expected to receive strong support from both retail and institutional investors in New Zealand and offshore.

“Scales has an exposure to the key primary sectors in New Zealand across its three operating divisions, Horticulture, Storage & Logistics and Food Ingredients. We believe our diversity and exposure to a number of expanding export sectors is one of our key strengths.

“Scales has a highly experienced senior management team with an average tenure of more than 20 years with the sector knowledge, relationships and expertise to continue to develop the company.”

Mayson also highlights Scales’ strong recent track record of financial performance where it achieved an after tax profit of $20.4 million on record revenues of $272.8 million in the 2013 financial year.

The Joint Lead Managers for the offer are First NZ Capital and Deutsche Craigs. There will be no public pool. Interested parties should contact the Joint Lead Managers, their NZX Advisor or authorised financial adviser for a copy of the investment statement for the IPO.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news