Next-owned Hirepool seeks up to $227m in NZ IPO

The shares are expected to price between NZ$1.10 and NZ$1.50, valuing the company at NZ$366-425 million. Hirepool plans to offer up to 120.1 million new ordinary shares and sell up to 83.5 million existing shares.

The offering - which was confirmed last week and is scheduled for July 11 - is intended to help the company capitalize on growth in New Zealand's economy, particularly in the construction, infrastructure and maintenance sectors, which generate nearly half of Hirepool's revenues.

AVCJ Research's records show that Next bought a 75% stake in Hirepool from Goldman Sachs JBWere and Mainfreight for $103 million in 2006. Next and its co-investors will raise as much as NZ$125.2 million from selling some of their shares and will continue to own between between 20% and 35% of the company's ordinary shares after the offering.

The company - which rents equipment such as vehicles, portable toilets and catering gear through its 58 branches - saw sales decline by 7.6% in the 2014 financial year, according to a report by Deutsche Bank. The same report values the company at NZ$260-320 million ($221-272 million) in pre-marketing research and expects it to post a revenue of NZ$156.5 million for the 2015 financial year. 

Hirepool acquired New Zealand rival HireQuip - which was backed by Tasman Capital - last year.

Deutsche Craigs, UBS and Macquarie Securities are managing the IPO.

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• Topics
• Australasia
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• Next Capital
• New Zealand
• Australia
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• IPO