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

 


Metroglass float in the hands of institutions to set price

Metroglass float in the hands of institutions to set price

By Pam Graham

July 3 (BusinessDesk) – A draft prospectus for the float of Metro Performance Glass has been in the hands of fund managers since Monday and they will set the price of the float tomorrow when a bookbuild is completed.

Retail investors will get information next week, likely on Monday, when the prospectus is registered with the Companies Office. The prospectus when registered will have a price rather than a range to be set in a bookbuild later.

Ahead of that there’s been considerable unsourced speculation about whether or not the float will go at the top end of a $1.65 to $1.90 a share range institutions are considering in a bookbuild. Australian media reports are speculating the price will go at the top end of the range, while New Zealand Institutions are talking it down.

New Zealand Shareholders’ Association chairman John Hawkins does not have a problem with the process, saying an upfront bookbuild has the advantage of setting a price early.

“We favour a front-end bookbuild as opposed to a back-end one, which the government did with MightyRiverPower,” Hawkins said. “At least that means when the thing is available for investors to invest in there is a known price.”

The bookbuild comes after the Hirepool float fell over because the promoters’ suggestion of price was at odds with institutions.

The Australian Financial Review reported there is strong demand and the price will be toward $1.75 to $1.80. This was confirmed to BusinessDesk by a person familiar with the float.

Hawkins told BusinessDesk the speculation was not ideal, in that “there is always a problem that institutions get a bit of a heads up ahead of ordinary investors prior to a bookbuild.”

Still, questions about price simply indicated tension in the price-setting process.

The Metroglass vendor is Australian private equity company Crescent Capital, which has owned the Auckland-based business for six years, but it is not yet known if they are partially or fully selling down. Anchorage Capital and other major shareholders are also selling down in the float.

The sale is expected to be worth between $237 million and $273 million, depending on the price set in the bookbuild. That’s a price to earnings ratio of between 12.5 to 14.5 times earnings.

The joint lead managers of the offer are Forsyth Barr, Macquarie Securities NZ, UBS New Zealand and Macquarie. In June, they said Metro Performance Glass was considering an initial public offer, which was expected in July. The sale will be via broker allocation.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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