Scales to sell shares at $1.60, bottom of range, in $148.8m IPO

Andy Borland, Scales Corp Chief Executive

Scales Corp, the fruit and vegetable logistics group, will sell shares at the bottom of its indicative range in a $148.8 million initial public offer.

The Christchurch-based company will sell 93 million shares at $1.60, the bottom of the $1.60 to $1.85 indicative range, after institutional investors set the price in a bookbuild. Of the $148.8 million, Scales will raise $30 million of new capital and its shareholders will sell into the float. Private equity firm Direct Capital will cut its stake to 20 percent from its current holding of 84.2 percent. The price values Scales at $224 million.

About half of the offer was allocated to institutions in New Zealand, Australia and Asia with the remainder going to certain NZX Firms on behalf of their retail investor clients, Scales said.

"We are delighted to be welcoming 12 domestic institutions, several global agriculture funds and retail clients from all of the major NZX broking firms as investors in Scales." chairman Jon Mayson said.

The bookbuild comes after Hirepool pulled out of an IPO when fund managers pushed back against the price.

The offer opens tomorrow, though there won't be a public pool. Deutsche Craig and First NZ Capital are lead managers of the offer.

Scales is expected to list on July 25.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6617 0.0000 0.00%
AUD 0.9312 0.0000 0.00%
EUR 0.5883 0.0000 0.00%
GBP 0.4560 0.0000 0.00%
HKD 5.1599 0.0000 0.00%
JPY 74.9170 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1237.4 -9.140 2016-02-12T00:
Oil Brent 34.0 -0.490 2016-02-12T00:
Oil Nymex 31.9 3.190 2016-02-12T00:
Silver Index 15.8 0.000 2016-02-12T00:

Indices

Symbol Open High Last %
NZX 50 5987.0 5987.0 5987.0 -0.89%
NASDAQ 4307.3 4340.1 4266.8 1.66%
DAX 8854.4 8967.5 8752.9 2.45%
DJI 15691.6 15974.0 15660.2 2.00%
FTSE 5537.0 5707.6 5537.0 3.08%
HKSE 18278.8 18482.3 18545.8 -1.22%
NI225 15426.3 15437.2 15713.4 -4.84%