Eastern Hi Fi lists on NZAX
14 December 2004
Eastern Hi Fi lists on NZAX
Keen institutional demand has contributed to the successful completion of an Initial Public Offering (IPO) of shares by specialist audio-visual equipment importer and retailer Eastern Hi Fi Group Limited.
Five million dollars was raised in the IPO through the issue of two million new ordinary shares at $1 and the sale of three million existing shares by interests associated with Eastern Hi Fi’s founder and managing director Steve Allbury.
Andrew McDouall, Managing Director of Lead Manager and Organising NZX Participant McDouall Stuart Securities Limited says subscribers were motivated by the Eastern Hi Fi’s potential to grow its earnings and the good dividend yield that the dividend policy ensures.
Andrew McDouall said it was pleasing that NZAX listings were continuing to attract institutional support from the professional fund management community, who he believes recognise the value that many smaller New Zealand companies offer.
Quotation and trading of Eastern Hi Fi’s ordinary shares is expected to begin on the NZAX on Wednesday 15 December 2004 following completion of the allotment procedures. Shareholders should expect to receive their shareholder statements later this week.
Interests associated with Steve Allbury will hold 48 per cent of the company with the balance held by more than 300 shareholders.
Eastern Hi Fi’s chairman Rick Bettle says he is delighted with the investor response.
“The group is on track to open three new stores next year and add several significant brands. In the last week we have acquired the New Zealand distributorship for Netstreams range of specialist products. These will take custom designed built home audio systems to a new level of sophistication.”
Netstreams is the 13th brand in the Eastern Hi Fi stable and will complement Russound and Intellinet products for the installation of home theatre and audio systems.
Eastern Hi Fi’s managing director Steve Allbury says he was impressed with Netstreams products when he saw them at a recent trade show in Indianapolis.
“We had been looking for this type of in-wall amplified key pad for a while,” he said.
“It gives much greater flexibility for multi-room audio and theatre systems to satisfy the lifestyle trend for home installation.”
Custom installation of home theatre and audio systems is one of Eastern Hi Fi’s specialist areas. It also operates six of its own branded retail outlets and is a distributor of 12 other brands of high to mid range audio and visual equipment through subsidiaries Avalon Audio and Pacific Audio.
Initially Eastern Hi Fi will import the Netstreams Musica range of digital key pads and amplifiers. These control sound in individual rooms and also allow local input from an Ipod or other device such as a laptop computer.
The agreement completed this week with Netstreams will also see the arrival of its Digilinx range of products capable of creating the computer controlled “electronic house”.
The proceeds of the successful capital raising will be used to add further brands and open new retail outlets in Palmerston North, Gisborne and an Auckland location yet to be confirmed.
For product information on
Netstreams see www.netstreams.com