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

 


Metroglass to sell $244.2M of shares in IPO, no new capital

Metroglass to sell $244.2M of shares in IPO, no new capital

By Paul McBeth

July 7 (BusinessDesk) - Metro Performance Glass, which has more than half the New Zealand glass processing market, will raise $244.2 million in an initial public offer, almost all of which will go to its current owners who have spent $40 million since taking control.

The Auckland-based company will sell 143.7 million shares at $1.70 apiece, according to a prospectus lodged with the Companies Office today. Of the money raised, some $230.5 million will buy the Metroglass assets from its private equity owners Crescent Capital and Anchorage Capital and senior management, with the private equity owners keeping a combined stake of 18.5 percent and management retaining 3.8 percent. Some $10.9 million will cover the cost of the offer and $2.8 million will go towards reducing debt. Net debt will be about $50 million upon listing.

Chief executive Neil Rigby told a conference call the private equity owners have invested about $40 million over the past three years, including upgrading its facilities, and anticipate capital expenditure of about $5 million over the next three to five years. Metroglass's current owners took over in 2012 after the company's lenders forced a restructure of the then-heavily leveraged firm in the face of a declining residential construction market in mid-2008.

"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," chairman John Goulter said in the prospectus. "Whilst the New Zealand construction market is cyclical by nature, residential construction activity is forecast 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."

The price was set in a bookbuild last week, coming in near the bottom of an indicative range between $1.65 and $1.90. Institutional investors have started pushing back against vendors' expectations as a raft of public offers give them broader investment opportunities.

Metroglass expects to lift net profit to $14.3 million in the 12 months ending March 31, 2015 from $12 million in 2014, with annual sales forecast to rise to $171.9 million from $155.4 million. It expects to pay a dividend 3.6 cents per share in the 2015 year, implying a cash yield of 2.1 percent.

The offer is expected to open on July 15 and close on July 28, with an ASX and NZX listing flagged for July 30.

The sale price implies a market value of $314.6 million, and enterprise value, which includes net debt, of $364.6 million upon listing.

(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

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news