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

 


Scales seeks up to $186.5 mln in July IPO

Scales seeks up to $186.5 mln in July IPO

By Suze Metherell

June 20 (BusinessDesk) - Scales Corp, the fruit and vegetables logistics group, is seeking up to $186.5 million in a July initial public offer, which aims to raise $30 million of new capital and let its major shareholder, private equity firm Direct Capital, sell down its stake.

The Christchurch-based company will sell up to 100.8 million shares at an indicative price range of between $1.60 and $1.85 per shares, it said in a statement. Of that, Scales will offer between 16.2 million and 18.8 million new shares, while Direct Capital will reduce its stake to between 20 percent and 30 percent from its current 84.2 percent share. Direct Capital holds the shares with co-investors ACC and the New Zealand Superannuation Fund. That's expected to value the agribusiness at between $221.3 million to $251.2 million.

Scales said the $30 million of new capital will fund "flexibility for the future expansion of its business" as well as pay down its debt. The company expects to list on the NZX on July 25. After the float, Scales said its average prospective net debt was $44.1 million.

The fruit logistics company forecasts net profit to fall to $15.9 million in 2014 from $20.4 million last year, before rising to $20.8 million in 2015. It expects to pay a dividend of between 9.4 cents per share and 9.6 cents per share, implying a gross dividend yield of 7.2 percent to 8.2 percent, for the 2014 financial year, and between 10.5 cents to 10.7 cents per share, for a gross yield of 8 percent to 9.1 percent, the following year.

Scales also owns and operates air freight service Balance Cargo, has North and South Island cold storage operations Polarcold and Whakatu Coldstores, a fruit juice concentrate business Pro Fruit, and a pet food unit Scales Meateor.

Scales will sell its shares in a three tiered offer, offering shares initially to Pohutukawa investors, a diversified private equity fund managed by Craigs Investment Partners and Direct Capital, from June 27 to July 2. Institutional investors and broker firms will then participate in a bookbuild to determine the final price and allocation of shares. There will be no general public offer, meaning retail investors will need to invest through a brokerage which is allocated shares.

Deutsche Craig and First NZ Capital are lead managers of the offer.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news