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: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news