Tegel valued at $552-636m as IPO kicks off
Private equity owner to retain 45% post listing.
Analysts appear to have overcooked the value of chicken producer Tegel in their pre-float estimates, figures in its just-lodged prospectus document indicate.
According to the proposed timetable, the broker firm offer for Tegel Group Holdings shares opens on April 20 and closes on April 29, with an expected listing on the NZX and ASX on May 3.
At the indicative price range of $1.55 to $2.50 a share, Tegel will have a market capitalisation of $552-636 million.
Analyst reports seen by NBR last month placed valuation ranges on Tegel of $597-769m (First NZ Capital) and $628-704m (Deutsche Bank).
Tegel, New Zealand’s main poultry producer, is being offered for sale by its private equity owners Affinity Equity Partners (87%) and London-based investor Intermediate Capital Group (11%).
The float is primarily an offer of new shares, which will raise $284-320m to pay down $132m of bank debt and $129-163m of shareholder debt.
There is also an allowance of for offer costs and an $8m management bonus.
A further 9.7m of existing shares will be sold into the offer.
Affinity and existing management will own 45.8% of Tegel after the offer is complete and their stakes will be held in escrow until Tegel releases its results for the year to April 2017.
The price of the offer will be set by a bookbuild on April 18-19.
Joint lead managers of the offer are Deutsche Craigs and Goldman Sachs, with the New Zealand offer being managed by First NZ Capital.
At the offer price range, Tegel expects to pay a dividend equivalent to a yield of 4.4-5.1%.
Follow NBR on Facebook, Twitter, LinkedIn and Instagram for the latest news and free on-demand audio from NBR Radio.
Tim Hunter
Fri, 01 Apr 2016
Fri, 01 Apr 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Tegel valued at $552-636m as IPO kicks off
56920