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


CBL shares climb 12% on NZX debut

CBL shares climb 12% on NZX debut

By Suze Metherell

Oct. 12 (BusinessDesk) - CBL Corp shares rose 12 percent on their NZX debut as the credit surety and financial risk insurer raised $90 million of new capital in an initial public offering to bolster its capital base and help fund aspirations to expand.

The shares first traded at $1.74 giving the company an implied market capitalisation of $382.3 million and up from the $1.55 offer price. The Auckland-based firm raised $125 million in total from the sale, of which $35 million will go to existing shareholders selling into the offer. Of the remainder, $32.7 million will pay for the acquisition of Australian insurer Assetinsure, up to $20 million will increase regulatory capital, and $28.9 million will be put aside to provide headroom for organic growth or other potential purchases. About $8.4 million will be spent on offer costs.

CBL, which began as Contractors Bonding Ltd in 1973, derives almost 98 percent of its revenue from international operations. The company said it expects its dual listing on the NZX and ASX to increase its profile, broaden its investor base, increase regulatory capital capacity, and help fund growth.

The company's 2014 net profit rose 8 percent to $19.4 million on gross written premiums of $242 million. It is forecasting gross written premiums of $335 million this year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


What Lies Beneath: Is The Housing Market Turning?
Rising interest rates, combined with further tightening of credit availability appear to be dampening the enthusiasm of investors and first home buyers. While house values continue to rise, what lies beneath QV's latest figures is growing evidence that price pressure has shifted... More>>

R&NTU: KiwiRail strike notices withdrawn following new offer

Strike notices on KiwiRail have been withdrawn. Rail and Maritime Transport Union General Secretary Wayne Butson says following negotiations between the RMTU and KiwiRail, a new offer from KiwiRail will be taken back to union members for ratification... More>>

Banking: Stress Tests Show Strengthening Bank Resilience

The latest stress tests carried out by the Reserve Bank of New Zealand – Te Pūtea Matua show strengthening resilience in the banking sector and the benefits of continuing to build capital buffers... More>>

Reserve Bank: Deputy Governor Reflects On Time At RBNZ
Central bankers must continue to look forward to guard against the unpredictable, Deputy Governor Geoff Bascand says in a speech published today. Mr Bascand joined the Reserve Bank of New Zealand – Te Pūtea Matua in 2013 during the aftermath of the Global Financial Crisis... More>>

Xero: Data Reveals ICT Expenditure Key To Small Business Sales Growth
Xero, the global small business platform, today released a new report which shows New Zealand small business ICT expenditure has increased 25 percent compared to pre-pandemic levels - more than the UK (20%) and Australia... More>>

Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>

Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>