Napier Port is seeking to raise between $204.3 million to $234m in its initial public offer (IPO) for a 45% stake in the company.
It has also set an indicative price range of $2.27 to $2.60 per share for the offer with first opportunity open for Hawke’s Bay residents, ratepayers, port employees and certain iwi entities on July 23.
The general public will have a chance to buy shares with an NZX mainboard listing taking place on August 20.
The IPO will see 90 million shares on offer and over $110m of capital raised will be used to repay the port’s existing debt and provide capacity to fund a long-term investment programme, which includes the construction of a new multi-purpose wharf.
The remainder of the capital raised will enable the port’s current owner, Hawke’s Bay Regional Council, to fund a portion of its investment in the facility and will also provide for interest-free loans to eligible employees to buy shares in the IPO.
The final price will be set by Napier Port following a bookbuild managed by the joint lead managers Deutsche Craigs and Goldman Sachs, expected to take place from August 6 to 7. All shares will be issued at the final price.
Napier Port chair Alasdair MacLeod says he is “delighted to invite investment” into the company.
“For nearly 150 years, Napier Port has been connecting Hawke’s Bay and the surrounding regions with the people and markets of the world. The combination of the robust Hawke’s Bay economy, our position in the country’s major transport routes and our experienced management team, have underpinned the port’s stable financial performance in recent years and give directors confidence in the future of the port,” MacLeod says.
Port chief executive Todd Dawson says Napier Port is a “long-term infrastructure asset”.
“It enjoys supportive regional economic growth drivers, a diversified trade portfolio, and strong relationships with its customers, people and community. Over the last decade the port has also established a record of stable growth.
“We therefore need to invest to ease the congestion already impinging on port operations, to continue to support our customers, and to host the larger container and cruise ships that are increasingly visiting New Zealand waters,” Dawson says.
Napier Port forecasts revenue to grow 6.1% from $91.7m to $97.4m in the 12 months to September 30, 2019.
In the 2020 financial year the port forecasts revenue to rise 5.3% on the 2019 result to $102.5m and EBITDA to rise 3.1% over the same period to $40.9m.
*Go to napierportshareoffer.co.nz for more information.
looking to buy shares in Napier Port