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Metroglass Lists on the NZX And ASX; Completes IPO

MEDIA RELEASE

30 July 2014

Metroglass Lists on the NZX And ASX; Completes NZ$244.2m Initial Public Offer

New Zealand’s leading value-added glass processor[1] Metro Performance Glass Limited (Metroglass) today made its debut on the New Zealand and Australian stock exchanges following completion of its NZ$244.2 million initial public offer.

[1] Based on industry interviews, publicly available import data and financial information as analysed by Partners in Performance and reported on in the Partners in Performance Report prepared for Metroglass dated 6 June 2014. See the Prospectus for more information on the Partners in Performance Report.

Shares in the company began trading on the NZX at 11.30am (NZT) this morning at NZ$1.70 a share, giving the company a market value of NZ$314.6 million. The shares opened at $1.75 and at 12.10pm were trading at $1.77.

At a celebration at the NZX’s Auckland office, Metroglass Chairman Sir John Goulter unveiled a glass plaque featuring the Metroglass-supplied façade of the Christchurch Transitional Cathedral to commemorate the listing.

Sir John said: “Metroglass enjoys a bright future as the New Zealand market leader in the value-added glass processing sector. We are launching onto public markets when demand for our products is strong.

“Residential construction activity is forecast to exceed historical averages over the medium term. Thanks to our supportive shareholders, we are well positioned to make the most of these favourable market conditions. Over the last four years, we have built out our management capability, invested in increased production capacity and automation and improved the operating cost structure of the business, while maintaining our high customer service levels.

“In particular, a $40 million four-year investment programme has seen: further automation of our Christchurch facility; the development of custom lamination capabilities and the upgrade our transport fleet. It will also see the consolidation of Metroglass’ five existing Auckland sites into a new purpose built facility, targeted for completion in March 2015. The company is looking ahead with great optimism,” Sir John said.

Metroglass Chief Executive Nigel Rigby said: “We make our NZX and ASX debut with a strong balance sheet, with net debt standing at $50 million, representing a conservative debt to prospective EBITDA for the 12 months ending 31 September 2015 of 1.2x. We also enjoy the support of some of Australasia’s leading financial institutions and a large swathe of retail shareholders.

“Metroglass is a New Zealand success story and we are pleased Australasian capital markets have recognised the company’s potential. The IPO and NZX and ASX listing puts in place a long-term ownership structure that will help to ensure the significant investments we have made in plant and glass products are managed for the long-term in line with our customer-focused strategy. We are looking forward to delivering on the company’s potential.”

Joint lead managers of the offer were Forsyth Barr Limited, Macquarie Securities (NZ) Limited and UBS New Zealand Limited.

Key Offer statistics

Offer price $1.70
Number of Shares offered under the Offer 143.7 million
Gross proceeds from the Offer $244.2 million
Number of Shares held by the Selling Shareholders[2] upon completion of the Offer 34.3 million (being 18.5% of the number of Shares on issue upon completion of the Offer)
Number of Shares held by Senior Management upon completion of the Offer 7.1 million (3.8%, 75% of their current investment)
Number of Shares on issue on completion of the Offer 185.0 million
Indicative market capitalization[3] $314.6 million
Net debt on completion of the Offer[4] $50 million
Indicative enterprise value (EV)[5] $364.6 million

2 Details of selling shareholders’ respective holdings after completion of the IPO are set out in Section 10.1 The Offer of the Prospectus. The Selling Shareholders are largely unrelated organisations who are not expected to act in concert in respect of their holdings of Shares following completion of the IPO.
3 The market capitalisation of Metroglass, based on the offer price multiplied by the number of shares on issue on completion of the IPO.
4 Net debt on completion of the IPO is equal to total debt upon completion of the IPO of $55.0 million less cash and cash equivalents of $5.0 million.
5 Enterprise value (EV) is equal to the sum of the indicative market capitalisation and the net debt position on completion of the IPO

ABOUT METRO PERFORMANCE GLASS:
Metroglass processes more than two million square metres of glass products per year and is the largest value-added glass processor in New Zealand with more than 50% market share1. We produce a range of customised glass products that are predominantly used in residential and non-residential construction applications. We have national coverage through 17 sites, including five major processing sites, a fleet of over 260 service vehicles and more than 700 employees across New Zealand. For more information visit http://www.metroglasstech.co.nz/

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