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Scales Corporation IPO bookbuild completed with strong investor demand
04/07/2014

Media release                                                                                          

A stake in New Zealand’s primary sector will cost investors $1.60 a share following a successful bookbuild process by Christchurch-based agribusiness Scales Corporation.  The final Offer size has been set at 93 million ordinary shares (being $149 million) and includes $30 million of new capital to provide flexibility for the future expansion of its business. 

The Offer has received very strong support from institutional investors and NZX Firms with demand significantly exceeding the size of the Offer at the final Offer price.  Around half of the Offer has been allocated to institutions in New Zealand, Australia and Asia with the remaining allocated to certain NZX Firms on behalf of their retail investor clients.

Scales chairman Jon Mayson says institutional investors and participating brokers have been impressed by the company’s proven earnings record and growth prospects.

“We are delighted to be welcoming 12 domestic institutions, several global agriculture funds and retail clients from all of the major NZX broking firms as investors in Scales.” Mayson says.

Direct Capital Investments Limited, together with its co-investors the New Zealand Superannuation Fund and ACC, has confirmed it will retain a cornerstone shareholding of 20 per cent in Scales following the Offer. 

Based on the final Offer price of $1.60 per share, the company’s market capitalisation will be $224 million. 

Joint Lead Managers for the offer are First NZ Capital and Deutsche Craigs and there is no public pool.  Interested parties should contact the Joint Lead Managers, their NZX Advisor or authorised financial adviser for a copy of the investment statement for the Offer.

Contact information for the Joint Lead Managers is as follows:

Deutsche Craigs 0800 226 263                   First NZ Capital 0800 320 200. 

The broker firm offer opens tomorrow (5 July) and is expected to close at 5pm on 22 July. Shares are expected to commence trading on the NZX Main Board on 25 July. (Dates are indicative only and may be amended.)

Important Notice:

The offer of shares in Scales Corporation Limited ("Scales") is made on the terms and conditions set out in the Investment Statement and the Prospectus for the initial public offering of ordinary shares ("Shares") in Scales.

None of Scales, Direct Capital Investments Limited, co-investors, or any other person guarantees the Shares. An application has been made to NZX Limited ("NZX") for permission to list Scales and to quote the Shares on the NZX Main Board, and all requirements of NZX relating thereto that can be complied with on or before the date of this announcement (being 4 July 2014) have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement. The NZX Main Board is a registered market operated by NZX, which is a registered exchange, regulated under the Securities Markets Act 1988.

Issued for Scales Corporation by Pead PR

Contacts:

Andy Borland, Managing Director, Scales Corporation Limited, DDI: 0-3-371 0345, Mob: 021-975 999, email: [email protected]

Candice Robertson, Pead PR, Tel: 0-9-918 5576, Mob: 021 075 7911, email: [email protected]

About Scales Corporation

Scales is an established agribusiness market leader with long standing customer relationships, efficient operating systems and an experienced management team.  It comprises three operating divisions: Horticulture, Storage & Logistics and Food Ingredients. The company’s diverse spread of activities gives Scales broad exposure to New Zealand’s primary sector. Scales was founded in 1897 as a shipping business by George Herbert Scales.  Today it employs more than 400 staff New Zealand wide.  Find out more at www.scalescorporation.co.nz