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

 

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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