Scoop has an Ethical Paywall
Tegel shares first trade at $1.69, up 9% from IPO price
Tuesday 03 May 2016 11:16 AM
Tegel shares first trade at $1.69, up 9% from IPO price, after being sold near bottom of range
By Jonathan Underhill
May 3 (BusinessDesk) - Tegel Group Holdings, the poultry group taken public by private equity firm Affinity Equity Partners, first traded at $1.69, delivering an immediate 9 percent gain to investors who bought the stock in the initial public offering.
The stock recently traded at $1.71, valuing the company at about $609 million, in the first IPO of 2016. New Zealand's biggest poultry business is being taken public by its second private equity owner after Affinity Equity Partners acquired Tegel in a leveraged buyout from Pacific Equity Partners and ANZ Capital in early 2011. PEP had, in turn, bought Tegal from HJ Heinz in 2005.
The shares were sold in the IPO at $1.55 apiece, having been marketed in a range of $1.50 to $2.50.
The IPO managers Deutsche Craigs, Goldman Sachs and First NZ Capital had to drum up appetite for Tegel shares in a stock market that Bloomberg News reported this month was Asia's most expensive. Added to that was the negative factor of Tegel's private equity ownership in a market where the Dick Smith retail chain has suffered a very public demise after being taken public by Anchorage Capital Partners in 2013.
(BusinessDesk)
ends
Business Canterbury: Urges Council To Cut Costs, Not Ambition For City
Wellington Airport: On Track For Net Zero Emissions By 2028
Landcare Research: ANZAC Gall Fly Release Promises Natural Solution To Weed Threat
NZ Anti-Vivisection Society: Auckland Rat Lovers Unite!
University of Canterbury: $1.35 Million Grant To Study Lion-like Jumping Spiders
Federated Farmers: Government Ends War On Farming
