Scales IPO

[iceman]

It will be welcome to see the listing of another agriculture industry business on the NZX.
The detail will be interesting when released.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11266982

[Harvey Specter]

It should be a good addition to the NZX. Not sure if it will take my fancy though.

It looks like the receivers sold this one for a bargain at the expense of the taxpayer.

[kiora]

Yes, just another gouging of the poor old taxpayer. Sold for $40 m,$20 m profit this year WHF !

It should be a good addition to the NZX. Not sure if it will take my fancy though.

It looks like the receivers sold this one for a bargain at the expense of the taxpayer.

[iceman]

So they are going to raise $ 161-187 million with an indicative price range of $ 1.50 - $ 1.82 per share, valuing the company at $221-251M.
Noticeably this will raise only $30M of new equity and the rest will go to existing shareholders Direct Capital, ACC and the NZ Superfund which are selling down ¾ of their stakes.
The new capital will be used to reduce net debt to $44M.
EBIDTA of $38.8M (NP 15.9M) for 2014 rising to $41.2M (NP 20.8M) in 2015.

Sees growth across all 3 divisions, horticulture, logistics & storage and food ingedients. Eyeing acquisitions in the apple business.
Offer price set on 5 July and listing on 24.

Will be watching this but not sure about this one. Disappointing how much of the money they intend to raise is buying out large stakes from existing shareholders

[SimonHouse]

So then, better to buy Scales, or better to buy PGW, SML or ATM as an agricultural play?

[percy]

So then, better to buy Scales, or better to buy PGW, SML or ATM as an agricultural play?

I added to our PGW holding yesterday.As I also hold REL [unlisted market] and Tru-Test [direct] I am not looking for more in this sector.I also hold PAZ [unlisted market] but not sure whether you can call them an agricultural play.
I am not buying Hirepool.

[Beagle]

I'm looking to add more PGW, better diversified play in the sector in my opinion.

[RGR367]

So they are going to raise $ 161-187 million with an indicative price range of $ 1.50 - $ 1.82 per share, valuing the company at $221-251M.
Noticeably this will raise only $30M of new equity and the rest will go to existing shareholders Direct Capital, ACC and the NZ Superfund which are selling down ¾ of their stakes.

With so much money coming in via IPO only to reduce debt and more money for the existing shareholders are not the signs I look for a shareholding punt. I'll just be increasing stake on PGW.

[GTM 3442]

[QUOTE=iceman;484781]It will be welcome to see the listing of another agriculture industry business on the NZX.
The detail will be interesting when released.

Completely agree with you iceman. For a country which is so dependent on primary industries, access to listed investment those industries is minimal.

However I think that in the absence of a public pool, many of us are going to have to sit this one out.

I will be watching closely and accumulating over the years as the seasonal nature of the industry and the exchange rate make their presence known (isn't there an El Nino in the offing this year/next year?)

[westerly]

With a 60% reliance on apples, there will be good and bad seasons. Too much uncertainty for me

westerly

[iceman]

So then, better to buy Scales, or better to buy PGW, SML or ATM as an agricultural play?

While in the same industry as such, I put Scales in a very different category to SML & ATM. I hold ATM and have been slowly adding.

I used to hold PGW but sold all my shares to the Chinese some time back, but have been weighing up dipping my toes in there again. So I am and will be comparing Scales a bit with PGW but has much in common with Turners & Growers as well. Even SEK could be good for some seasonal comparisons I suppose, albeit with different fruit.

But regardless of whether I buy in or not (leaning towards PGW at present), it is great to see more NZX options in our main industry.

[bull....]

not for me, theres a few things in the financials i dont like nothing major.
but i will be watching the company cause i do see opportunity to make money at some time in the future

[percy]

not for me, theres a few things in the financials i dont like nothing major.
but i will be watching the company cause i do see opportunity to make money at some time in the future

Not all Apples then?

[GTM 3442]

I would think the comparison would be Seeka SEK. Both production and infrastructure in a given primary industry sector.

[Hawkeye]

http://www.nbr.co.nz/article/scales-sell-shares-160-bottom-range-1488m-ipo-bd-158737

[whatsup]

Opened for trading today at $1.62-- what was its IOP price someone ?

[percy]

From today's listing announcement the offer price was $1.60.

[whatsup]

From today's listing announcement the offer price was $1.60.

$1.58 now, leap of faith "investing" in IPO's ATM !!

[GTM 3442]

Currently lurking at a modest discount in the low $.150's.

I see that Poland is the worlds largest apple producer, and that they have recently been shut out of Russia, their major market. I expect to see a lot more of whatever it is that the Russians like appearing on the shelves worldwide (including apples).

I always thought I'd slowly accumulate Scales in the "bad years". Well I may be putting my hand in my pocket sooner than I'd anticipated.