You are using an older browser version. Please use a supported version for the best MSN experience.

Tegel looks to raise up to $344m in IPO

NZ NewswireNZ Newswire 31/03/2016 Paul McBeth

Poultry group Tegel wants to raise as much as $344.4 million in New Zealand's first initial public offering of the year for the NZX mainboard.

The Auckland-based company, controlled by private equity firm Affinity Equity Partners, plans to sell 137.5m-192.4m shares at $1.50-$2.50 apiece, according to its product disclosure statement.

The gross proceeds of the IPO would raise $299.1m-$344.4m.

It says $131.9m will be set aside to repay bank debt and between $129.6m and $163m will pay out existing holders of Tegel's redeemable shares.

The remaining $22.5m-$25.3m will cover IPO costs, including an $8m bonus for senior management.

Tegel is forecasting profit of $10m on sales of $581.1m in the year ending April 24, rising to a profit of $44m on revenue of $637m the following year, when it intends to pay a dividend of between 7-11 cents per share.

Affinity intends to reduce its 87 per cent stake to 45 per cent after the offer.

Tegel will be the first IPO of the year after a sluggish 2015, which saw a number of sales deferred in turbulent financial markets.

In a letter to investors, chairman James Ogden said Tegel plans to focus on new product developments to increase the value and volume of poultry sold, expand value-added production, develop new sales channels, and enter new export markets.

image beaconimage beaconimage beacon