NAPIER Port in New Zealand has announced it is seeking to raise NZ$204.3m to NZ$234m with an initial public offer of a 45% stake in the company.
The final price is to be set by Napier Port after a bookbuild managed by joint lead managers Deutsche Craigs and Goldman Sachs, expected to take place from 6 August to 7 August.
Napier Port chair Alasdair MacLeod said they were delighted to invite investment.
“For nearly 150 years, Napier Port has been connecting Hawke’s Bay and the surrounding regions with the people and markets of the world,” Mr MacLeod said.
“The combination of the robust Hawke’s Bay economy, our position in the country’s major transport routes and our experienced management team, have underpinned the Port’s stable financial performance in recent years and give directors confidence in the future of the Port.”
Napier Port is offering NZ90m shares in the IPO.
Of the capital raised, $110.2m is to be used to repay debt and provide capacity for the port to fund a long-term investment program, including construction of a new multi-purpose wharf.
The remainder of the capital raised in the IPO is to enable the port’s current owner, Hawke’s Bay Regional Council, to realise a portion of its investment in the port and provide money for interest-free limited recourse loans to employees to buy shares in the port.
Chief executive Todd Dawson said Napier Port was a long-term infrastructure asset and they had to plan for future issues.
“We therefore need to invest to ease the congestion already impinging on Port operations, to continue to support our customers, and to host the larger container and cruise ships that are increasingly visiting New Zealand waters,” Mr Dawson said.
“The centre piece of our planned investment is the new multi-purpose 6-Wharf, a new 350metre wharf on the north side of the current container terminal. The new wharf will enable us to capitalise on future growth opportunities,” he said.
“It will provide for berthing of larger container vessels and increased operational agility and resilience.”
