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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

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:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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