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

 


Scales Corporation lists on the NZX Main Board

Media release trading – 1

July 25, 2014

Scales Corporation lists on the NZX Main Board

Shares in leading New Zealand agribusiness group Scales Corporation began trading on the NZX Main Board today following the successful IPO that raised $149 million through the sale of new and existing shares.

The stock in the horticulture, storage and logistics and food ingredients business was issued at $1.60 valuing Scales at $224 million.

Scales Corporation managing director Andy Borland says the issue has been well supported and the listing represents an excellent result for all concerned.

“We received very strong support from institutional investors and NZX Firms with demand significantly exceeding the size of the offer at the final offer price and we are very pleased with the shareholder spread.

“We welcome 12 domestic institutions, several global agriculture funds and retail clients from all of the major NZX broking firms as investors. We are particularly delighted that around half the offer has been subscribed to by retail investors – New Zealanders who see the value of a portfolio containing a strong, export-focused agribusiness.

“Scales now looks forward to achieving the goals set out when we began this journey, in particular the exciting prospects available to us through what is a fast-growing Asian sector.”

Direct Capital Investments Limited, together with its co-investors the New Zealand Superannuation Fund and ACC, has retained a cornerstone shareholding of 20 per cent in Scales following the listing.

The IPO comprised an offer of 93 million ordinary shares and raised $30 million of new capital which will provide Scales with flexibility for the future expansion of its business.

In its most recent annual result to 31 December 2013, Scales Corporation reported an after tax profit up by 50 per cent to $20.4 million.

Total revenue increased 17.2 per cent on 2012 to $278.1 million, with higher apple volumes and prices the single largest contributor while EBITDA was up by 34.4 per cent to $44.4 million.

Joint Lead Managers for the offer were First NZ Capital and Deutsche Craigs.

About Scales Corporation

Scales is an established agribusiness market leader with long standing customer relationships, efficient operating systems and an experienced management team. It comprises three operating divisions: Horticulture, Storage & Logistics and Food Ingredients. The company’s diverse spread of activities gives Scales broad exposure to New Zealand’s primary sector. Scales was founded in 1897 as a shipping business by George Herbert Scales. Today it employs more than 400 staff New Zealand wide. Find out more atwww.scalescorporation.co.nz


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news