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

 

Feltex Share Offer Price Set at $1.70 per share

24 May 2004

Feltex Share Offer Price Set at $1.70 per share

Feltex Carpets Limited has today announced that the final price of Shares in its Initial Public Offering (“IPO”) has been determined.

The final price has been set at $1.70 per Share. At the final price, Feltex will have a market capitalisation of $254 million making it the largest IPO of a New Zealand company since 1999. It will also place Feltex within the top 30 listed companies.

“We’re delighted the Feltex IPO has been so well received in the market. The level of retail investor interest in the offer has been excellent and the book build attracted good support from a range of domestic and international institutions and Primary Market Participants”, said Feltex chairman Tim Saunders.

“At the final price of $1.70 per share, the Shares are projected to provide a gross dividend yield of 9.6% for the year ending 30 June 2005. As well as providing investors with an attractive FY2005 projected gross dividend yield, a dividend of six cents per share is projected to be paid in October 2004 in respect of the year ending 30 June 2004,” said Feltex chief executive officer Sam Magill.

The offer of Shares pursuant to firm allocations from Primary Market Participants (NZX Firms) does not close until Wednesday, 2 June 2004. Under the offer structure, potential investors can now purchase shares at the fixed price of $1.70 per share via certain Primary Market Participants.

Mr Magill said: “We’re very pleased with the success of the Offer process to date. We’ve had excellent feedback from New Zealand retail brokers and their clients as well as from other investors. The company will have a strong and diverse share register”.

“The very attractive dividend yield on our shares when compared to recently announced IPO's and the general market provides investors with a real opportunity to acquire an investment with an excellent projected income flow priced at an attractive P/E (pre-goodwill amortisation) multiple of 9.8x”.

Credit Suisse First Boston Asian Merchant Partners, L.P. has owned the business for more than seven years, during which time it has expanded the company through the purchase of Shaw Industries Australia in 2000 into a leading Australasian carpet manufacturer and marketer.

Feltex Carpets’ Shares are expected to be listed on the NZSX on 4 June 2004. Mr Magill said: "I am looking forward to seeing Feltex shares successfully listed as a prominent public company in New Zealand. The company is excited about its future and the listing is a further important milestone for Feltex."

First NZ Capital and Forsyth Barr acted as Joint Lead Managers to the Offer.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Food Prices Increase 7.4 Percent Annually
Food prices were 7.4 percent higher in July 2022 compared with July 2021, Stats NZ said today... More>>



REINZ: Market Activity And Prices Continue To Ease, First Home Buyers Start To Return To The Market

New Zealand’s winter property market continues its recent trend, slowing from the pace of sales and price rises of last year — properties stay on the market longer and median prices dip... More>>

FMA: Cigna Admits Making False And Misleading Representations
Cigna Life Insurance New Zealand Limited has admitted to making false and/or misleading representations to customers in proceedings brought by the Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko... More>>



Retail NZ: Welcomes Return Of Cruise Ships

“Cruise visitors were big spenders in retail prior to COVID-19, and retailers in Auckland will be celebrating the arrival of P&O’s Pacific Explorer this morning... More>>



ASB: Full Year Results: Building Resilience Today And For Our Future

In its 175th year, ASB has reported a cash net profit after tax of $1,418 million for the 12 months to 30 June 2022, an increase of $122 million or 9% on the prior year... More>>


Commerce Commission: Draft Determination On News Publishers’ Association’s Collective Bargaining Application
The Commerce Commission (Commission) has reached a preliminary view that it should allow the News Publishers’ Association of New Zealand (NPA) to collectively negotiate with Meta and Google... More>>