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Fliway edges up 1.7% in NZX debut after $34m IPO
Thu, 9th Apr 2015
FYI, this story is more than a year old

Fliway Group shares rose 1.7 percent in their debut on the NZX, after the transport and logistics company's $34 million initial public offering, marking the first listing on the bourse for 2015.

The stock first traded at $1.22, before falling back to $1.21, or 1 cent above its offer price, and valuing the company at $55 million. Existing shareholders Duncan and Gretchen Hawkesby will retain 54 percent of the South Auckland-based company, after selling 20.9 million shares, below the 23.5 million minimum set out in the prospectus, to net $25 million.

A further 7.5 million of new shares were sold to raise $9 million in new capital, of which $6.5 million will be used to reduce the company's debt to $12.5 million, according to the prospectus.

The company's primary activities are transporting and warehousing freight throughout New Zealand and co-ordinating freight movements internationally, including customs clearance. It has 450 staff, 170 vehicles in its fleet, 11 branches and five warehouses around New Zealand.

Hawkesby will remain managing director of the company, which is forecast to have revenue of $85 million and net profit of $4.5 million in calendar 2015. The company expects to pay a dividend this financial year, amounting to between 50 percent and 70 percent of net profit, for a yield of or about 7.8 percent.

Craig Stobo is chairman of the company while Alan Isaac has been appointed as independent director.