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

 


Scales shares edge up 0.6% on NZX debut

Scales shares edge up 0.6% on NZX debut

By Suze Metherell

July 25 (BusinessDesk) - Shares in Scales Corp increased 0.6 percent on their NZX debut in the fruit and vegetables logistics company's $148 million initial public offer.

The shares first traded at $1.61, just above the $1.60 IPO price, valuing the company at about $225 million. Some 1.37 million shares of the company's 139.8 million shares on issue changed hands. Of the $148 million raised, $30 million was new capital, while private equity firm Direct Capital sold into the offer, reducing their stake to 20 percent from 84.2 percent. The firm held the shares with co-investors ACC and the New Zealand Superannuation Fund.

The IPO is the latest in a series of floats, which have primarily been tech-based companies seeking growth. Portable measuring device maker ikeGPS Group was the latest growth company to list, with its shares slumping as much as 18 percent on debut from its $1.10 offer price. IkeGPS's shares recently traded at 99 cents.

Scales said it will use new capital to fund "flexibility for the future expansion of its business" as well as pay down its debt, and after the float, expected its average prospective net debt to be $44.1 million.

The fruit logistics company forecast net profit to fall to $15.9 million in 2014 from $20.4 million last year, before a rise to $20.8 million in 2015. It expects to pay a dividend of between 9.4 cents per share and 9.6 cents per share, implying a gross dividend yield of 7.2 percent to 8.2 percent, for the 2014 financial year, and between 10.5 cents to 10.7 cents per share, for a gross yield of 8 percent to 9.1 percent, the following year.

Scales also owns and operates air freight service Balance Cargo, has North and South Island cold storage operations Polarcold and Whakatu Coldstores, a fruit juice concentrate business Pro Fruit, and a pet food unit Scales Meateor.

Deutsche Craig and First NZ Capital were lead managers of the offer.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news