By NZPA
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Monday 1st July 2002 |
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Brokers said Vertex had listed in a tough environment that depressed global stock markets weighed down by concerns about accounting, global conflicts and economic recovery.
The stock traded as low as $1.90. Around 330,000 shares worth $642,000 traded on market.
Vertex raised $61 million in just the second main board float of the year after Skellmax's listing. The company had been 93 percent owned by investment companies Pacific Equity, Bain Capital and their associates, who purchased it from Carter Holt.
It has forecast a 24 percent rise in operating earnings for its initial public offer to $12 million, from $9.7 million in 2002.
Gross dividend yield for 2003 is forecast at 10.3 percent, with Vertex expecting to pay out dividends at around 70 percent of net profits after tax in future.
Vertex has moved from a centralised structure under Carter Holt Harvey to numerous divisions manufacturing a range of plastic food containers, moulded components and industrial goods.
As a result, the company has factories in Wellington, Hamilton, Auckland and Hastings. It is New Zealand's largest rigid plastics packaging manufacturer.
Vertex's diverse products range from packaging for dairy consumables such as yoghurt, bottles for household products, trays, industrial containers, and Securefresh (supplying machinery to companies to produce longlife packaging of fresh meat).
Its most recognisable products include containers for Tip Top brand ice-cream and Fresh 'N Fruity yoghurt. The company also makes recycling bins, foam meat packing trays for supermarkets and butchers, and containers for household items such as Comfort brand fabric softener.
A large part of Vertex's forecast growth will be on the back of cost-cutting.
Around 20 percent of Vertex's 2002 revenues totalling $85.9 million came from exports, mainly to Australia, the Pacific Islands and the United States.
The first IPO of the year, agricultural equipment manufacturer Skellmax Industries, dipped below its issue price of $1.15, falling 2 cents to $1.14. The stock has traded in a range of $1.06 to $1.20 since listing June 19.
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