UPDATE: Transport and logistics provider Fliway offering IPO at $1.20 to $1.40 per share
Fliway Group, the transport and logistics provider behind the first float on the NZX this year, is hoping to raise between $27.3 million to $44.5 million with shares valued in the range of $1.20 to $1.40 per share.
That would give the company a market cap of between $54.6 milion and $63.6 million.
Duncan Hawkesby, the son of former broadcaster John Hawkesby, and his wife Gretchen, who is the daughter of New Zealand's richest man, Graeme Hart, bought the company off its founder in 2006. The pair will retain between 30 to 50 percent of the company following the IPO.
Hart provided seed capital for the pair to buy the business in 2006 which has since been repaid in full, Hawkesby said.
"He's a great guy to have around the dinner table and bounce things off," he said.
Hawkesby will remain managing director of the company which according to the prospectus registered today is forecast to make $85.6 million in revenue for the 12 months ending Dec. 31 and $4.5 million in net profit. It's had relatively steady earnings and revenue growth in recent years with revenue of $81.5 million in the 2014 financial year ended June 30, and net profit of $4.4 million.
The offer will be attractive to investors seeking yield income as the company will pay out between 50 and 70 percent of NPAT in dividends.
The prospectus lists a number of standard risks including a reduction in revenue by Fliway's key customers. Nearly half of revenue in the 2014 financial year came from its 10 largest customers, half of which had revenue increases and decreases of more than 10 percent in 2014 compared to the previous year.
The risk of the share price post-IPO being affected by a selldown by the majority shareholders has been reduced by them signing an escrow agreement not to sell any shares until the preliminary results for the financial half year ending Dec. 31, 2015 are announced around March next year.
The prospectus says if the Hawkesbys retain a 40 per cent stake, they will receive $26.4 million from the IPO. That will leave a further $9 million in new capital that will go towards repaying a $2.8 million shareholder loan, other debt of $3.7 million, and listing transaction costs of $2.6 million.
Hawkesby said the IPO will help raise the profile of Fliway and broaden its shareholder base, while giving the company access to capital in the future.
Chairman Craig Stobo will receive $80,000 per annum while independent director Alan Isaac will be paid $60,000 per annum. 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. .
It also owns half of UPS-Fliway, a joint venture its had for the past 17 years with UPS, one of the world's largest package delivery companies.
Hawkesby said it was looking to expand courier deliveries and build or acquire into new sectors, such as dangerous goods, refrigerated transport or bulk liquid haulage.