Napier Port seeks to raise $234m in partial float
Napier Port is seeking to raise up to $234 million in next month's partial share float.
Hawke's Bay Regional Council is selling 45 percent of the port, and offering shares in a range of $2.27 and $2.60 per share, valuing the company at up to $497.6m.
Port chief executive Todd Dawson said Napier port was a long-term infrastructure asset.
"It enjoys supportive regional economic growth drivers, a diversified trade portfolio, and strong relationships with its customers, people and community," Mr Dawson said.
"Over the last decade the port has also established a record of stable growth."
In the offer documents released Monday, Napier Port said it expected revenue growth in the year to September of 6.1 percent to $91.7m, and underlying earnings to increase 6.8 percent.
Priority for shares would be given to local residents, port employees, and local iwi, before the final price is set following a bookbuild process in early August.
Port chairman Alasdair MacLeod said he was happy with the level of interest from local residents who had pre-registered.
"If this level of interest carries through to the offer, we can be confident of meeting Hawke's Bay Regional Council's objective of strong local participation in the IPO."
Napier Port expected to begin trading on the stock exchange on 20 August.
Some of the capital raised will be returned to Hawke's Bay Regional Council to invest in environmental projects, while more than $110m will be used to repay port debt and build a new wharf.
"The new wharf will enable us to capitalise on future growth opportunities," Dawson said.
"It will provide for berthing of larger container vessels and increased operational agility and resilience."
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