Apple exporter seeks new money

MARTA STEEMAN
Last updated 12:44 20/06/2014

Relevant offers

Cropping

Rising star horticulture helped by falling tariffs Bad weather, fungus spears North Island asparagus crops Marlborough recycling plant proposed for treated, untreated timber Get the facts before deciding on Healthy Rivers Plan for Change Rockit apple ownership dispute ends in confidential agreement Government increases Pacific Island horticulture workforce by 1000 Zespri's new release of SunGold licences to boost exports by hundreds of millions Uncertainty among Healthy Rivers plan change putting farmers off property Zespri adapts marketing strategy to accommodate local customs Hefty top-up for aquifers and farmer spirits in South Canterbury

The country's largest apple exporter has announced an initial public offering of shares worth between $161 million and $187m.

Scales Corporation is offering 100.8 million shares to the public at an indicative price of $1.60 to $1.85 a share.

The IPO will raise $30m in new capital for expansion of the agribusiness, and the rest of the shares are those being sold by its shareholders, Direct Capital Investment, ACC and the New Zealand Superannuation Fund.

The majority shareholder, Direct Capital, will sell much of its 84 per cent holding.

The three shareholders would retain a 20 to 30 per cent stake when the IPO was completed.

Based on the indicative price range, the company's market capitalisation would be $221m to $251m.
Scales registered its prospectus for the IPO today.

The company is the largest exporter of apples in New Zealand and has orchards and marketing operations as well as a pet food manufacturing business and cool store operations.

The final price for the shares will be set on July 4 after a bookbuild for brokers and institutional investors.
Shares are expected to start trading on the NZX on July 25.

Scales Corporation chairman Jon Mayson said the offer was expected to receive strong support from retail and institutional investors in New Zealand and overseas.

"We believe our diversity and exposure to a number of expanding export sectors is one of our key strengths," he said.

The company had an experienced senior management team, with an average tenure of more than 20 years, with the sector knowledge, relationships and expertise to continue to develop the company, Mayson said.

Scales had an after-tax profit of $20.4m on record revenues of $272.8m in the 2013 financial year.

The joint lead managers for the offer are First NZ Capital and Deutsche Craigs. There will be no public pool.

Ad Feedback

- The Press

Special offers

Featured Promotions

Sponsored Content