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Intueri climbs 17% in training group's NZX debut

Intueri Education Group [NZX: IQE] rose 17 percent to $2.75 in its NZX debut after owner Arowana International spun off the private training school operator about a year after its own listing on the ASX through a reverse takeover.

The shares first traded at $2.63 after being sold in an initial public offering at $2.35, and were recently at $2.70, giving the company a market value of $270 million. That values Arowana's remaining 24.9 percent holding at $67 million.

"Its been a relatively successful listing but pretty much all the activity has been large lines of stock so it really has been the institutions buying and selling the stock," said Grant Williamson, director at Hamilton Hindin Greene, which didn't buy any Intueri shares. "It's a new industry that has come onto the market obviously it does give some fund managers some diversification into a new business type. I would have to say I may be a little bit surprised to see it trade as actively as it has on the first day and at the level it has traded."

Intueri is set to become New Zealand’s largest private training establishment by domestic students, with 6,000 local enrollments and a further 1,000 international students each year, across 26 locations. It also owns half of Online Courses Australia. After listing, Intueri has said it will look to expand in the private education sector in New Zealand and its Australian online education business.

Massey University chancellor and former Landcorp chief executive Chris Kelly is chairman of the company.

Arowana used the shell of insulation business Intelligent Solar, which was placed in administration in 2011 after being caught by the Australian federal government's decision to end a subsidy programme. In turn, it is part of Arowana & Co, set up in 2007 as a type of private equity investor looking at a wide range of businesses.

Arowana shares last traded on the ASX at 88 Australian cents and have climbed 83 percent since their debut in April 2013.

(BusinessDesk)

Comments and questions
5

Congrats to Arowana and your brokers on the slam together and immediate sell (at a huge arbitraged profit)

A good start, but the announcement that NZX had to give a waiver for the number of shareholders, as reported on STUFF, combined with the smaller sell-down than expected suggests that the market wasnt really supportive of the IPO and perhaps the price is "managed" on opening ?

This is a disappointing result, if I am right, and the UBS and Macquarie partnership (the Lead Managers) has fallen short on delviering for their client. 330 shareholders ! I am guessing that most AX companies have more shreholders than that.

The Company should now put in the hours and talk to the wider broking community about its prospects and future and engage in some serious IR, including direct to investors and outside of the NZX broking community, given that the NZx brokers dont seem to have widely supported the issue.

But now the business needs to deliver on the theoretical and pro forma forecasts. It bought and sold quantum on the same day and made a massive profit for Arowana - it better lve up to prospectus forecasts. I have no respect for the joint lead managers for this float.

This was a great outcome!

By the way the wider broking community had the opportunity to take up shares but turned it down.

Only 330 shareholders bought stock in the initial listing! According to the nzx $51m turned over today which equates to over 21% of the IPO value - so by weight of capital 1 out of 5 has already sold out. Good for them and good grief.