BREAKING NEWS
Police treating death of a man at his Rotorua home as suspicious ... Read more
Close

Scales upbeat about NZX debut

MICHAEL FOREMAN
Last updated 17:38 25/07/2014

Relevant offers

Industries

Olympic swimmer Mark Weldon jumped in the deep end at MediaWorks Attention cat lovers: Ever wondered what your cat is trying to say? Kogan-run Dick Smith website hits the internet as stores close Australian budget could mean Kiwis less likely to report to Aussies Pressure on water bottlers to pay up Protestors rally in Auckland against ANZ's investment in fossil fuels Heat on Maori Television chief executive Paora Maxwell over staff turnover NZ unemployment jumps to 5.7 per cent despite strong job growth Mark Weldon right to resign from MediaWorks, former TV3 news boss says OIO faces 'independent review' following Onetai farm sale

Agribusiness Scales Corporation made an unspectacular debut as a listed company on the NZX today, its shares ending the day 2 cents below their $1.60 issue price.

The shares opened marginally up at $1.61 but eased down in afternoon trading.

Scales managing director Andy Borland was philosophical about the debut.

"In this market, we'll call that a positive outcome," he said.

Scales owns the country's biggest apple-growing and exporting operation, Mr Apple. It also runs a coolstores and logistics business and a pet-food ingredients processor.

NZX head of markets Aaron Jenkins said Scales' listing was the sixth initial public offering and the first in the agricultural sector this year.

Scales offered 93 million shares for sale in an offer which closed on Tuesday. About 18.75 million were new shares to raise $30 million for the expansion of the business.

The rest of the shares were those being sold by its main shareholders, Direct Capital Investments, and co-investors the New Zealand Superannuation Fund and ACC, which retained a combined total of 20 per cent of Scales shares.

Demand for the shares had exceeded the number available, the company said.

Scales chairman Jon Mayson said 12 domestic institutions, several global agricultural funds and retail clients of broking firms had invested in Scales shares.

Borland said the IPO would halve Scales' debt from $60m to $30m, would help fund expansion, particularly in Asian markets, and would provide liquidity to existing shareholders.

He was "not too concerned" about the continuous disclosure requirements the company would be required to comply with as a listed company.

"We are used to keeping the board informed, now we will be keeping the market informed," Borland said.

Scales in May reported a particularly good apple harvest had contributed to a record profit of $20.4m for the year to December 31, up 50 per cent from $13.6m in 2012. Revenue rose 17 per cent to $273m.

In its prospectus issued last month, the company forecast a profit of $15.9m on revenue of $254m for its 2014 financial year.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content