Briscoes gets ready for float

By Phil Boeyen, ShareChat Business News Editor

Friday 21st September 2001

Retail company Briscoe Group says it will go ahead with plans for a public share offer - but not just yet.

The group, which owns the Briscoes homeware stores and Rebel Sport chain in New Zealand, says it will make a public offer of share as soon as "a reasonable level of stability returns to the financial markets".

Under the offer the company's current owner, the R.A.Duke Trust, will sell or transfer 75% of the current total of 170 million shares in the group to third parties while 40 million new ordinary shares will be offered to the public, including employees.

The trust says the new shares to be issued will represent 19% of the 210 million Briscoe Group shares on issue post the float.

"The timing and pricing of the public issue will be ultimately determined through market testing. The directors anticipate the offer price will be around $1.00 a share," Briscoes says.

Virtually all preparatory work for the offering is reported to be completed. The money raised will finance an ongoing modernisation programme for Briscoes Homeware stores and an intended expansion of the Rebel Sport chain from 11 to 21 stores.

"To date, the modernised format has been incorporated in five of the 28 Briscoes Homeware stores, including the newest store at Botany Downs in Auckland's Eastern Suburbs.

"Funds will also be applied to repay a shareholder advance and provide Briscoe Group with greater flexibility to pursue other expansion opportunities in the retail sector."

JB Were is the organising broker. Briscoes says shares will be primarily allocated to retail investors with some shares available to institutional clients of JB Were, but there will be no public pool.

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