Sharechat Logo

Latest IPO sees Airwork’s shareholder Hugh Jones to sell up to $40 mln stake

Tuesday 19th November 2013

Text too small?

Airwork Holdings, the aviation services specialist, is set to join the NZX next month as majority shareholder Hugh Jones looks to sell up to $40 million of shares in an initial public offering.

The company is offering up to 15.4 million shares, or 30.6 percent, at $2.60 apiece, to buy back shares from Jones and repay debt, according to its prospectus lodged with the Companies Office. That implies a market capitalisation of $130.6 million.

The IPO is made up of a broker firm offer and an institutional firm, and won't have a public pool. It opens on Nov. 27, closing on Dec. 13, with a listing expected on Dec. 19.

"The IPO will see me sell down only a portion of my shares - I am not ready to sign out just yet - and as a director will, with my fellow board members, support Chris Hart in his new role as chief executive officer," Jones said in the documents. "The IPO gives Airwork a strong foundation to grow and succeed and I still intend to be part of that."

Depending on the level of subscription, Jones will have between 51.2 percent and 67 percent of the company's shares.

Airwork will become the latest company to join the NZX this year in a busy year for listings, including the partial privations of state-controlled power companies Meridian Energy and MightyRiverPower, service station chain Z Energy, dairy processor Synlait Milk and intelligence software developer Wynyard Group.

The company forecasts annual net profit of $8 million in the year ending June 30, 2014 on sales of $125 million, up from profit of $6 million and revenue of $118 million in 2013.

It anticipates an annual dividend of 14 cents per share in the 2014 financial year, implying a gross dividend yield of 6.4 percent.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Briscoe Group says outlook uncertain
FMA, RBNZ disappointed by life insurers' response; $1.4m of issues found
Steep rate cut may have spooked households - Westpac
Veteran media exec Joan Withers joins Sky TV board
Contact hires Refining NZ CEO to replace Barnes
17th September 2019 Morning Report
NZ dollar weaker after Trump authorises use of emergency crude stockpile
Govt minerals strategy poses 'significant' risk to security of supply - Enerlytica
Z, BP, Mobil dragging chain on secure Auckland jetfuel supply - review
MARKET CLOSE: NZ shares fall; high oil prices weigh on Air NZ, Mainfreight

IRG See IRG research reports