Member log in

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

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)

Comments and questions
6

Well that all seems sensible enough I'm glad instos got a good price for themselves and am looking forward to indirectly benefit

Not in any way picking Scales

Why are all these start ups in drag being marketed as growth stocks, especially when post listing they are volatile in thin trading. They are all speculative & high risk....maybe surviving counts as growth?

Scales is 102 years old - didn't realise it was a start up

Not in any way picking Scales - think they are making an IPO pump em hard comment. Old companys have usually had a couple of CPR's anyway

What was the value the government got from this via the SCF sell down

looks like a solid company, hope they go well