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

 


Scales to sell shares at $1.60, bottom of range, in IPO

Scales to sell shares at $1.60, bottom of range, in $148.8M IPO

By Paul McBeth

July 4 (BusinessDesk) - Scales Corp, the fruit and vegetable logistics group, will sell shares at the bottom of its indicative range in a $148.8 million initial public offer.

The Christchurch-based company will sell 93 million shares at $1.60, the bottom of the $1.60 to $1.85 indicative range, after institutional investors set the price in a bookbuild. Of the $148.8 million, Scales will raise $30 million of new capital and its shareholders will sell into the float. Private equity firm Direct Capital will cut its stake to 20 percent from its current holding of 84.2 percent. The price values Scales at $224 million.

About half of the offer was allocated to institutions in New Zealand, Australia and Asia with the remainder going to certain NZX Firms on behalf of their retail investor clients, Scales said.

“We are delighted to be welcoming 12 domestic institutions, several global agriculture funds and retail clients from all of the major NZX broking firms as investors in Scales.” chairman Jon Mayson said.

The bookbuild comes after Hirepool pulled out of an IPO when fund managers pushed back against the price.

The offer opens tomorrow, though there won't be a public pool. Deutsche Craig and First NZ Capital are lead managers of the offer.

Scales is expected to list on July 25.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news