Celebrating 25 Years of Scoop
Special: Up To 25% Off Scoop Pro Learn More

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


Methven Confirms NZSX Listing $36 Million Offer

Methven Confirms NZSX Listing and $36 Million Offer

Auckland-based tap, showerware and valving designer and manufacturer, Methven Limited, today confirmed plans to list on the NZSX market after it has completed a $36.2 million initial public offering. The offer is for 25.3 million new and existing fully paid ordinary shares at an issue price of $1.43 per share and will open on Monday 8 November.

Methven has a leading share of the New Zealand tap and showerware market and has been growing steadily into Australia since its current owners acquired the business in an AMP Capital backed management buy out in 2001.

The company's leading market position is based on innovative products such as its Fastflow shower mixer. Its recently released SatinJet shower technology is expected to strengthen this position. These products perform well in the low hot water pressure systems found in most New Zealand homes and, in the case of SatinJet, in situations where water conservation is important.

Methven’s product performance has earned the company strong support from local plumbers and merchants and also offers international growth potential. Methven managing director and group CEO, Rick Fala, says the company's success is largely due to its fluid dynamics expertise and its design and innovation focus.

"Methven spends around 5% of its revenue on product, process and international market development,” he said.

Methven has established itself in Australia through the introduction of domestic water control valves in 2001 and through the 2003 acquisition of a showerware supply business, now trading as Methven Australia. Methven Australia provided the platform for launching selected tapware ranges in Australia earlier this year. Around 35% of Methven Group turnover is generated in Australia.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“We are excited about the recent release of SatinJet and the range of other products we have under development, aimed at enhancing the shower experience. SatinJet provides a unique shower experience while also performing well at low water flow rates allowing water and energy savings which will be an important differentiator, particularly in Australia," says Mr Fala.

Money raised in the offer will enable existing shareholders to reduce their holdings to 50% of the post listing value of the company and will fund the acquisition of the 40% minority interest in Methven Australia.

The public offer features a special priority pool of 1 million shares for registered plumbers whom Methven will contact in writing.

“Plumbers are a key customer group for us and we want to give them an opportunity to become Methven shareholders. To our knowledge this is the first time a public offer has had a special priority pool of this nature,” said Mr Fala.

Methven chairman, Richard Cutfield, says that listing is the logical next step in the company’s development.

"The Methven business has been operating for 118 years but has grown significantly since the management buyout in 2001. Since this time Methven has become more focused on leveraging design to expand its core tap, showerware and valving business in New Zealand, Australia and further afield," said Mr Cutfield.

"The company has a motivated team of senior managers who, together with AMP Capital, will continue to retain a significant stake in the business and its future. However, it is now appropriate for existing holders to realise some of their investment and allow the public to share in the expected future returns of the company”.

"The acquisition of the remaining 40% of Methven Australia will enable Methven to capture all the benefits of expansion into Australia. Methven Australia’s selling shareholders have elected to commit a large proportion of their sale proceeds to subscribing for shares in the offer. We see this as a strong vote of confidence,” he said.

Lead manager to the offer and NZSX listing is ABN AMRO Craigs. A registered prospectus and investment statement will be available on Monday 8 November, from their offices.

© Scoop Media

Advertisement - scroll to continue reading
Business Headlines | Sci-Tech Headlines


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.