Hirepool confirms IPO plans, prospectus next week, said to raise $250m

Brian Stephen, Hirepool chief executive

Hirepool, the equipment rental company controlled by Australian private equity firm Next Capital, has confirmed plans to go public with an initial public offering, said to be aimed at raising $250 million.

The Auckland-based company said it expects to register a prospectus on June 16, with the issue price set by a bookbuild. On listing, Hirepool may have a market value of about $300 million, with Next Capital retaining a minority cornerstone shareholding, sources close to the sale process said. Earnings before interest, tax, depreciation and amortisation would be about $60 million in 2015, they said.

Deutsche Craigs, Macquarie Securities (NZ) and UBS New Zealand are joint lead managers with ANZ Bank New Zealand as co-manager, Hirepool said in a statement.

Hirepool gained antitrust clearance to buy rival Hirequip out of receivership in early 2013. That sale was required to satisfy Hirequip's secured creditor Westpac Banking Corp, which was owed $117.8 million. At the time, Hirepool said it bought the business to gain greater exposure to heavy equipment demand in Christchurch.

Hirequip's parent shareholding companies Pacific Equipment Solutions, PES Finance and Hire Equipment Group were placed in receivership in 2012.

Hirepool named Brian Stephen, former head of Hirequip, as chief executive in March, promoting him from chief operating officer. Former CEO Mike Foureur, who joined in 2013, continues as a non-executive director. At the same time it affirmed Ian Lewington as chief financial officer.

Hirepool has 69 branches throughout New Zealand, according to its website.

(BusinessDesk)

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