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Metroglass Launches $244.2 Million IPO And Planned Listing

MEDIA RELEASE

7 July 2014

Metroglass Launches $244.2 Million IPO And Planned NZX / ASX Listing

New Zealand’s leading value-added glass manufacturer[1] Metro Performance Glass Limited (Metroglass) today launches its initial public offering (IPO) of its fully paid ordinary shares (Shares), after registering a prospectus with the Registrar of Financial Service Providers this morning.

This follows an institutional and broker firm book build. That resulted in the price being set at $1.70 per share implying a total market capitalisation of $314.6 million following completion of the offer on 31 July 2014. At this price the offer was more than two times oversubscribed.

Metroglass processes more than two million square metres of glass products per year and is the largest value-added glass processor in New Zealand with more than 50% market share1. It produces a range of customised glass products that are predominantly used in residential and non-residential construction applications. It has national coverage through 17 decentralised sites, including five major processing sites, a fleet of over 260 service vehicles and more than 700 employees across New Zealand.

Chairman Sir John Goulter said: “Metroglass is very positive about its future prospects. The New Zealand value-added glass processing market is forecast to grow, driven in particular by the expansion of the residential construction market and the improving commercial construction market.”

Chief Executive Nigel Rigby said: “The New Zealand construction market is cyclical by nature. However, residential construction activity is expected to exceed historical averages over the medium term, buoyed by economic growth, net migration flows, the stimulus of the Christchurch rebuild and the reversal of the below average level of building activity over the past six years since the global financial crisis.”

“Metroglass has converted its competitive position into a strong financial performance. From FY12 to FY14[2], Metroglass’ Pro Forma revenue and Pro Forma EBITDA[3] increased at a compound annual growth rate of 11% and 45% respectively. Furthermore, the Board believes that Metroglass is well placed to continue to deliver earnings growth over the Prospective Period.”

New Zealand and international institutional investors have been allocated shares. New Zealand resident clients of NZX firms, Australian resident clients of Australian brokers and certain Metroglass employees will be offered shares. A total of 143.7 million shares will be offered at $1.70 raising $244.2 million. There will be no public pool.

Joint lead managers of the offer are Forsyth Barr Limited, Macquarie Securities (NZ) Limited and UBS New Zealand Limited. A copy of the prospectus and investment statement can be downloaded at www.metroglassoffer.co.nz or by contacting one of the joint lead managers

Key Offer statistics

Offer price $1.70
Number of Shares being offered under the Offer 143.7 million
Gross proceeds from the Offer 244.2 million
Number of Shares held by the Selling Shareholders[4] upon completion of the Offer 34.3 million (being 18.5% of the number of Shares on issue upon completion of the Offer)
Number of Shares held by Senior Management upon completion of the Offer 7.1 million (3.8%, 75% of their current investment)
Number of Shares on issue on completion of the Offer 185.0 million
Indicative market capitalization[5] $314.6 million
Net debt on completion of the Offer[6] $50 million
Indicative enterprise value (EV)[7] $364.6 million


1 Based on industry interviews, publicly available import data and financial information as analysed by Partners in Performance and reported on in the Partners in Performance Report prepared for Metroglass dated 6 June 2014. See the Prospectus for more information on the Partners in Performance Report.

2 Financial years ended 31 March

3 See Section 9.3 Reconciliation of Non-GAAP financial information of the Prospectus for an explanation of Pro Forma revenue and Pro Forma EBITDA, including a reconciliation to historical and prospective financial information.

4 Details of selling shareholders’ respective holdings after completion of the IPO are set out in Section 10.1 The Offer of the Prospectus. The Selling Shareholders are largely unrelated organisations who are not expected to act in concert in respect of their holdings of Shares following completion of the IPO.

5 The market capitalisation of Metroglass, based on the offer price multiplied by the number of shares on issue on completion of the IPO.

6 Net debt on completion of the IPO is equal to total debt upon completion of the IPO of $55.0 million less cash and cash equivalents of $5.0 million.

7 Enterprise value (EV) is equal to the sum of the indicative market capitalisation and the net debt position on completion of the IPO.

16708468_140705__Metro_Presentation_Final.pdf

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