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.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Weldon walks from MediaWorks
- Big rent costs if Auckland Transport moves headquarters to city
- NZX's Weldon saw 'Agri-Bloomberg' in Clear Grain Exchange: Ralec case opens
- Ralston slams Weldon for leaving MediaWorks 'rudderless'
- Indiana primaries: Trump clinches win, Cruz quits; Clinton faces loss to Sanders
Most listened to
- Still hope for TPP insists trade expert Stephen Jacobi
- Mark Weldon couldn't hack the pressure, says Bill Ralston
- TEU’s Sandra Grey and NZ Initiative's Oliver Hartwich on whether the UoA should be a funder or member of the NZ Initiative
- Capital Economics's Paul Dales says the RBA and the RBNZ are in very similar positions
- ANZ Bank CEO David Hisco on the forces behind his bank's profit and margin slide