Next-owned Hirepool abandons New Zealand offering

The company said in a statement that Next Capital was comfortable retaining control of Hirepool given the strength of the New Zealand economy and the positive outlook for the business. Local media reports claimed that institutional investors were unwilling to pay the asking price.

Hirepool planned to offer up to 120.1 million new ordinary shares and sell up to 83.5 million existing shares, with the proceeds used to reduce debt and increase its stake in a part-owned subsidiary. A price range of NZ$1.10-1.50 was set, valuing the company at NZ$366-425 million. According to The New Zealand Herald, several retail brokers and three-quarters of the local institutional market thought a range of NZ$0.70-0.85 was more realistic.

The company is looking to capitalize on growth in New Zealand's economy, particularly in the construction, infrastructure and maintenance sectors, which generate nearly half of its revenues. Hirepool rents equipment such as vehicles, portable toilets and catering gear, through a network of 58 branches.

According to AVCJ Research, Next bought a 75% stake in Hirepool from Goldman Sachs JBWere and Mainfreight in 2006, paying $103 million. The PE firm and its co-investors were looking to retain 20-35% of the company post-offering.

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• Topics
• Exits
• Australasia
• Industrials
• IPO
• Next Capital
• New Zealand
• Exit