Trading of New Zealand’s newest freight listing has come with a caution.
TIL Logistics Group Limited put out a message on Friday encouraging people to get professional advice before buying shares in the company.
This was a result of wide market pricing of the shares following the recent acquisition of the company involving a $11.51 million private placement.
The company is valued at $200 million.
Shares were sold to professional investors at $1.50 per share ahead of the listing. On the day of trading, investors were offering to sell at over $5.
“TLL encourages people who wish to trade in TLL shares at this stage, while there is a limited liquidity in the shares, to seek financial advice before doing so,” the statement said.
TLL chairman Trevor Janes told NBR he felt the prices didn’t match up.
“Far be it from me to tell the market what shares should trade at but that’s a fairly big premium on the issue price,” he says.
TLL is one of the country’s largest private domestic freight and logistics providers, with a nationwide network of branches, depots and warehouses.
Its activities include transporting and warehousing freight throughout New Zealand and co-ordinating international freight movements.
It also has a specialist road tanker division for fuel delivery.
On Monday the shares were being offered at $2.40.
