Fliway readies for NZX launch
The listing bell for Hawkesby-owned Fliway all set to toll.
See also: Fliway charts course for organic growth and acquisitions
Transport and logistics company Fliway Group [NZX: FLI] is launching onto the New Zealand stock exchange tomorrow morning in the first listing of the year.
The initial public offer price for the company was set at $1.20, at the bottom end of the indicative range and valuing the business at $54.5 million.
The Mangere-based business has been owned since 2006 by Duncan and Gretchen Hawkesby, the daughter of New Zealand’s richest man Graeme Hart. The Hawkesbys will retain a 54% holding and Mr Hawkesby will remain managing director.
The Hawkesbys will sell 20.9 million shares, below the 23.5 million minimum set out in the prospectus, to net $25 million. A further 7.5 million of new shares were sold to raise $9 million in new capital, of which $6.5 million will be used to reduce the company’s debt to $12.5 million,
The company is proposing a dividend yield of 8.1% for the 12 months to December 31.
The $6 billion transport and logistics sector is fragmented, but Mr Hawkesby has said he is confident the company can capture a bigger market share after it joins big listed names such as Mainfreight [NZX: MFT] and Freightways [NZX:FRE], as Fliway specialises in certain niches such as delivering high-value, large and awkward items.
The company has more than 170 specialised vehicles in its fleet and operates from 16 bases from Whangerei to Dunedin, and the business operates in three parts.
Its domestic business runs through a ‘hub and spoke’ model, focusing on warehousing and logistics, mainly by courier vans and big rigs. Its international business operates ocean freighting and a customs brokerage, and the third division is its 50/50 joint venture with international UPS (United Parcel Service).
Fliway forecasts 2015 revenue to be $85.3 million and earnings before interest, tax, depreciation and amortisation to be $8.7 million. In 2014, revenue was $81.5 million and ebitda $8.3 million.
The listing bell is scheduled to ring at 11am tomorrow.
Calida Smylie
Wed, 08 Apr 2015
Wed, 08 Apr 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Fliway readies for NZX launch
46679