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Moa up on NZX debut

Moa shares got off to a good start, trading at an 8% premium to the $1.25 offering price .

Georgina Bond
Tue, 13 Nov 2012

Update 1pm

Moa Group’s midday listing on the NZX saw its shares start trading at $1.35 – 10c above the offering price of $1.25.

However, they soon dropped back to $1.30 where they have remained for most of the afternoon.

The craft brewer has raised $16 million in first IPO of the year.

Moa shares are trading on the NZX main board under the ticker code MOA

As share trading went live, chief executive Geoff Ross and his fellow directors watched on, sipping Moa’s breakfast brew, at a listing function at Auckland’s  Britomart precinct.

“Every self-respecting company needs a brewery on its exchange,” said Mr Ross.

“Today is important because New Zealand needs to create more growth companies.”

NZX chief executive Tim Bennett said it was a great day for the New Zealand market.

“Let’s hope there’s more of this to come,” Mr Bennett said.

Moa Group directors are Geoff Ross, Allan Scott, Craig Styris, Grant Baker, Kim Ellis, and Alistair Ryan.

10am/ Moa beer to hit NZX at midday 

New Zealand will once again have a listed brewer when shares in Moa Group start trading on the NZX today.

Allocations for the Moa IPO have been completed in advance of quotation, which is expected to occur on the NZX main board at midday under the code MOA.

The craft beer brewer has raised $16 million by offering shares at $1.25 each. Of that, $15 million was raised from institutional investors and an additional $1 million was offered through a public pool.

The minimum application was for $1500 worth of shares.

Because applications to the $1 million public pool were significantly oversubscribed by 124% – more than twice the sum sought – allocations will be scaled back considerably, Moa says.

Investors who did not pre-register were last week warned they were unlikely to get any shares, but would get a refund once the offer is settled.

Moa chief executive Geoff Ross, founder of 42 Below vodka, says he hopes investors who missed out can invest in Moa post-listing by looking to buy on-market.

Applicants can visit the Link Market Services Investor Centre at from 9am to confirm their allocation before trading of the shares begins.

The local stock exchange has not had a locally-listed brewer since Lion delisted in 2009 when it was bought by Japanese brewer Kirin.

Moa expects to have a market capitalisation of about $38 million following the IPO.

Its investment statement reveals the brewer made a net loss of  $2.85 million in the year to March 2012 and losses are forecast to continue until 2014.

Dividends will not be paid for the period covered by the prospectus.

"Moa is currently a loss-making entity; it is not anticipated to make a net profit in the near term as the business invests in growth,"  the statement says.

It needs the money to increase its brewing capacity by building a larger, $6.1 million brewery facility at its Marlborough base and to cover the $1.6 million cost of the float.

Following the IPO, the existing shareholders will own 61.58 % of 30.4 million total shares.

Moa's pre-float shareholders include the Business Bakery, co-owned by Mr Ross, with a 42% stake,  Pioneer Capital and Allan Scott Wines.

The beer brewer was founded in 2003 by Josh Scott, the son of Marlborough winemaker Allan Scott.

Craigs Investment Partners and Forsyth Barr acted as joint lead managers for the Moa offer.

Georgina Bond
Tue, 13 Nov 2012
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Moa up on NZX debut