Gullivers Travel confirms IPO plans

Wednesday 10th November 2004

New Zealand's largest outbound travel business, Gullivers Travel Group, has confirmed that it will make an initial public offering of shares and list on both the New Zealand and Australian Stock Exchanges, valuing the business at $160 million.

Gullivers' founder and managing director Andrew Bagnall said that an IPO would create a new platform for the future growth of Gullivers as a publicly listed company. It will also provide the opportunity for new investors, the senior management of Gullivers, staff, franchisees and customers to participate in New Zealand's leading travel services business.

UBS, the lead manager and underwriter of the float, completed a bookbuild yesterday for 65 million shares, representing 65% of Gullivers Travel Group. UBS said there had been keen interest from institutional and retail investors, in both New Zealand and Australia. The bookbuild price was set at $1.60, raising a total of $104 million to be used to fund the acquisition of the subsidiary companies forming part of the Group.

The company will now proceed to register a prospectus and complete the retail offer process. There will be no public pool. A dual listing on the NZX and ASX is expected in mid-December.

Bagnall said he and other existing shareholders within the group would among them subscribe for a 35% shareholding in Gullivers as part of their on-going commitment to the continued success of the group.

Gullivers Travel Group includes the Holiday Shoppe and United Travel retail leisure franchises, corporate travel management companies Atlantic Pacific Radius and Signature Travel and wholesale and ticketing businesses Gullivers Holidays and Gullivers Ticketing. The group also comprises travel management software development and distribution businesses.

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