Tuesday 3rd May 2016 |
Text too small? |
Tegel Group Holdings, the poultry group taken public by private equity firm Affinity Equity Partners, first traded at $1.69, delivering an immediate 9 percent gain to investors who bought the stock in the initial public offering.
The stock recently traded at $1.71, valuing the company at about $609 million, in the first IPO of 2016. New Zealand's biggest poultry business is being taken public by its second private equity owner after Affinity Equity Partners acquired Tegel in a leveraged buyout from Pacific Equity Partners and ANZ Capital in early 2011. PEP had, in turn, bought Tegal from HJ Heinz in 2005.
The shares were sold in the IPO at $1.55 apiece, having been marketed in a range of $1.50 to $2.50.
The IPO managers Deutsche Craigs, Goldman Sachs and First NZ Capital had to drum up appetite for Tegel shares in a stock market that Bloomberg News reported this month was Asia's most expensive. Added to that was the negative factor of Tegel's private equity ownership in a market where the Dick Smith retail chain has suffered a very public demise after being taken public by Anchorage Capital Partners in 2013.
BusinessDesk.co.nz
No comments yet
MPG - Metroglass clarifies media statements by Crescent Capital
VTL - Takeovers Panel orders Empire to reimburse Vital's expenses
March 14th Morning Report
SKT - Sky secures iconic sports rights
RYM - Ryman completes Retail Entitlement Offer
TEM - Transaction in Own Shares
FPH launches F&P Nova™ Nasal mask in NZ and AU
Fonterra announces changes to management team
March 12th Morning Report
WHS FY25 Interim Results teleconference details