Fliway IPO priced at $1.20 in bookbuild, bottom of bookbuild range, people say

Wednesday 18th March 2015

Fliway Group, the transport and logistics company, has been priced at $1.20 a share in the bookbuild for its initial public offering, the bottom end of the indicative range, people say.

Existing shareholders Duncan and Gretchen Hawkesby will retain 54 percent of the South Auckland-based company, market participants told BusinessDesk. The couple planned to retain 30 percent to 50 percent of the company after the IPO, selling up to 23.5 million existing shares, according to the prospectus lodged with the Companies Office this month. The shares had been offered in an indicative range of $1.20 to $1.40.

All up the IPO is expected to raise between $27.3 million and $44.5 million. The money raised will mainly go to the Hawkesbys, who are currently the sole shareholders, with an expected $9.3 million left in as new capital, of which $6.5 million will be used to reduce the company’s debt to $12.5 million, according to the prospectus.

Hawkesby will remain managing director of the company, which is forecast to have revenue of $85 million and net profit of$4.5 million in calendar 2015. The company expects to pay a dividend this financial year, amounting to between 50 percent and 70 percent of net profit, for a yield of or about 7.8 percent.

Craig Stobo is chairman of the company while Alan Isaac has been appointed as independent director. The closing date for the offer will be April 1 and it’s expected to trade on the NZX main board by April 9, with the first dividend due for payment in September this year.

The company’s primary activities are transporting and warehousing freight throughout New Zealand and co-ordinating freight movements internationally, including customs clearance. It has 450 staff, 170 vehicles in its fleet, 11 branches and five warehouses around New Zealand.

BusinessDesk.co.nz

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