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

 

A2 Milk to list on ASX in 1Q 2015

A2 Milk to list on ASX in 1Q 2015

By Suze Metherell

Nov. 18 (BusinessDesk) - A2 Milk Co, the milk marketing company, is planning to list on the Australian stock exchange next year, where it has 9 percent of the fresh milk market sold in grocery stores.

The Auckland-based company doesn't plan to raise any new capital in a float on the ASX and will keep its New Zealand incorporation and NZX listing, it said in a statement. It has hired Goldman Sachs New Zealand and DLA Piper Australia to manage the listing, and hopes to join the Australian bourse in the first quarter of 2015.

In August, managing director Geoffrey Babidge called the Australian market A2's "big cash generator", and said it will bankroll its push into new markets. The company reported annual sales rose 17 percent to $111 million in the year ended June 30, of which 96 percent came from Australian sales. A2 reported a drop in annual profit to $10,000 from $4.1 million a year earlier, as the strength of the kiwi dollar against its Australian counterpart weighed on sales.

“With a significant part of our earnings and growth coming from Australia, seeking an ASX listing is a logical strategic move for the company," Babidge said today. "Listing on ASX will enable more Australian investors to participate in the company's growth and will increase the attractiveness and liquidity of its shares. The board believes that this will benefit all shareholders.”

Shares of A2 were unchanged at 60 cents, and have fallen some 25 percent since the start of the year, underperforming the NZX 50 Index's own 16 percent gain. The stock is rated an average 'buy', based on the consensus of four analysts surveyed by Reuters, with a median price target of 80 cents.

Its annual meeting is underway in Auckland today.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Stats: Auckland’s Population Falls For The First Time
In the wake of the COVID-19 pandemic, New Zealand’s population growth slowed down with Auckland recording a population decline for the first time ever, Stats NZ said today. “New Zealand saw slowing population growth in all regions... More>>



BusinessNZ: Third Snapshot Report Reveals $9.5 Billion Business Investment In Climate Action

Signatories to the Climate Leaders Coalition have committed to invest $9.5 billion over the next five years to reduce emissions from their businesses, as revealed in their third anniversary snapshot report released today... More>>

Digitl: The home printer market is broken
Printers are more of a security blanket that a serious aid to productivity. Yet for many people they are not optional.
Even if you don’t feel the urge to squirt ink onto dead trees in order to express yourself, others will insist on printed documents... More>>


Retail NZ: Some Good News In COVID Announcements, But Firm Dates Needed

Retail NZ is welcoming news that the Government is increasing financial support for businesses in light of the ongoing COVID-19 lockdown, and that retail will be able to open at all stages of the new “Covid Protection Framework... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>



Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>