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

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news