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

 


UPDATE: Metroglass shares gain 4.1% on NZX debut

UPDATE: Metroglass shares gain 4.1% on debut as investors chase yield

By Suze Metherell

July 30 (BusinessDesk) - Shares of Metro Performance Glass, New Zealand's largest glass processor, advanced 4.1 percent in early trading on their NZX debut, as investors looked for easy-to-value businesses with ready dividends in a stock market busy with companies seeking funds for growth.

The shares recently traded at $1.77 after having first traded at $1.75, up from its $1.70 IPO price and giving the company a market capitalisation of $327.5 million. The IPO raised $244.2 million with private equity owners Crescent Capital and Anchorage Capital taking some $230.5 million as they reduce their ownership to an 18.5 percent stake and senior management kept 3.8 percent. Of the balance, $10.9 million will cover the cost of the offer and $2.8 million will go towards reducing debt, with net debt at about $50 million upon listing.

The company 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 of 3.6 cents per share in the 2015 year, implying a cash yield of 2.1 percent.

Metroglass is the seventh company to list on the NZX this year as the local stock market enjoys a flurry of listings, particularly in the growth and tech-space. Last week, ikeGPS Group, which sells a range of portable measuring devices, and Scales Corp, the fruit packager and exporter, debuted on the NZX. Both have fallen below their IPO prices. Last month, Gentrack Group, the utilities and airport software provider, and Serko, the travel booking system company which is also trading below its offer price, debuted. While upcoming listings include Vista Group International, a cinema ticketing and data analytics firm and ERoad, a logistics and fleet management company, in August.

"It is quite a different dynamic to some of the stuff that has listed," said James Lindsay, who helps manage $400 million in equities for Tyndall Investment Management. "They're easier businesses to value, you don't have to hand-on-heart guess where things are going as much. They're clearer businesses to have a defined range about what you would think fair value would be."

The volume of listings was also weighing on retail investors, meaning many of their portfolios were overweight in equities and weakening demand for non-dividend paying, growth stocks, Lindsay said.

The price was set at the lower end of the indicative price range of $1.65 to $1.90, in a front-end book build where institutions set the offer price before retail investors saw the prospectus.

The current owners spent about $40 million over the past three years, including upgrading the company's facilities, and anticipate capital expenditure of about $5 million over the next three to five years, chief executive Neil Rigby said earlier this month. The private equity firms took control of Metroglass in 2012 after its previous owner couldn't manage the debt burden of the company, which took an impairment against goodwill.

After the write-down, the company had an enterprise value of $180 million, less than half the $366.2 million paid by original private equity owner Catalyst Investment Managers in 2006, according to documents released by the Overseas Investment Office at the time.

The company is dual-listed, with its secondary listing on the ASX.

Forsyth Barr, Macquarie Capital and UBS New Zealand were joint managers and underwriters of the Metroglass offer.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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