$16m float to fund Moa Beer extension
Moa Beer will spend a large chunk of the $16 million capital it expects to raise through an NZX share float on a "big building with some bits and pieces chucked in it", says founder Josh Scott.
Moa Group's chief executive, Geoff Ross, yesterday announced the initial public offering was going ahead on November 13, but had already been over-subscribed by four institutional groups and retail "mum and dad" investors.
Moa will offer 38.4 per cent of the company to the public at the price of $1.25, with another 3.6 per cent already having been allocated to existing shareholders who include Ross' Business Bakery, Pioneer Capital, Allan Scott Wines and company executives.
The $6.1m brewery extension project is a vital step to take the company's Blenheim-based brewing and bottling capacity from 14,000 to 50,000 cases a month in under a year.
Moa sold almost 50,000 cases, mainly across New Zealand, Australia and the United States, in the 2012 financial year and has shifted 35,000 cases in the first six months of the 2013 financial year.
According to its prospectus, the company expects to sell 97,496 cases in the full 2013 year, rising to 195,100 in 2014. However it will still not be turning a profit in that time frame, Moa's prospectus says.
The new brewery has been meticulously planned by Scott and his head brewer, Dave Nicholls, formerly of Heineken, alongside Ross and a board committee.
But in typically modest Kiwi fashion, Scott described the facility as "just a big building with bits and pieces chucked in it".
"It's how you use the equipment and build the Moa brand that will drive demand," said the 31-year-old who has brewing in his blood. Scott's father, Allan, also on Moa's board, claims to have physically helped plant Marlborough's first vineyard in 1973 and by 1990 had started his own winery.
Scott is not taking the sharemarket float lightly - it was his aim since before he met noted brand-builder Ross 2 1/2 years ago.
"It's great to see it grow because there was no way I could ever grow a company like this, this quickly," he said from Blenheim.
"I did everything when I started Moa; from brewing to budgets and marketing.
"It's been quite good to have specialists doing that now."
Scott's "executive brewer" role has been to develop the brand's presence and distribution overseas, under the guidance of Ross who sold his vodka brand 42 Below to Bacardi for $138m in 2006.
Moa's prospectus puts revenues at $2.4m for the 2012 year to March 31, with negative earnings before interest, depreciation and amortisation at minus $2.8m.
The company made a net loss of $2.8m. The company has forecast revenues of $4.3m for the year to the end of March 2013, leading to a $3.5m overall loss.
- © Fairfax NZ News
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