Sharechat Logo

Airwork, last listing of 2013, gains 5 percent in NZX debut after IPO raises $37.5M

Thursday 19th December 2013

Text too small?

Airwork Holdings rose 5 percent in its NZX debut after the aviation services specialist raised $37.5 million in an initial public offering.

The shares first traded at $2.73, valuing the company at $137 million, having been sold via a broker and institutional firm offer at $2.60 apiece. No shares were offered direct to the public. The company issued 14.4 million shares through the IPO bringing the total on issue to 50.2 million

Interests associated with majority shareholder Hugh Jones hold 61 percent of Airwork after the sale. Of the total funds raised, $17.5 million was used by the company to acquire and cancel shares from Jones, leaving about $20 million to help fund the company's growth plans, the Auckland-based company said.

"Airworks continues to perform in line with the prospectus, with management pursuing a range of growth projects," chief executive Chris Hart said in a statement. Projects include helicopter leasing opportunities, maintenance, engine and helicopter upgrade contracts and additional fixed-wing charter revenue, he said.

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.

The company had offered up to 15.4 million shares, or 30.6 percent, of the company. While it actually sold about 1 million less, the IPO met the minimum offer size of $30 million, it said.

Airwork is the final NZX listing for 2013, which has been one of the busiest in the past decade.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

NZ dollar eases on technical factors, buoyed by higher dairy prices
RBNZ eyes Westpac Australia money laundering failures
Heritage buys Golden Healthcare; not mystery Metlife suitor
Alliance margins improve as swine fever boosts global meat prices
RBNZ eyes Westpac Australia money laundering failures
Precinct eyes new developments as Commercial Bay keeps to revised schedule
End to Tower's three year dividend drought in sight
Vital Healthcare's manager appoints new independent director
Argosy lifts first-half profit 15.2% on valuation gains
Metlifecare attracts 'credible' bidder after biggest trading day in 2 1/2 years

IRG See IRG research reports