Up to 45 percent of Napier Port is expected be listed on the NZX in the middle of next year.
Another POT style success story?
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Up to 45 percent of Napier Port is expected be listed on the NZX in the middle of next year.
Another POT style success story?
Do you know who is participating in the IPO? can we get a slither through ASB/ANZ?
The proposed new container wharf development is described on the port web site. I have three queries.
The what will it look like images do not show the cranes to be used to work vessels along side. As part of the development does the Port intend to install a conventional container crane or use the existing swiveling jib cranes?
The new container berth is only partially protected by a breakwater. Is this sufficient protection from swells?
The latest annual report shows an increase in containers across the wharf. To what extent is this a blip caused by earthquake troubles in the Wellington Container Terminal?
Boop boop de do
Marilyn
Does anyone have any up to date info re the above IPO. Heard a whisper maybe next month.
Step right up
https://www.nzherald.co.nz/business/...ectid=12244211
I gave Craigs my expression of interest a few weeks ago.Look forward to reading the prospectus.
Boats usually come with cranes.
I wonder if anyone using asb securities will be able to buy? I suspect this will be an opportunity for only a few people, then the open market price will go up 20% almost immediately after the ipo...
Agree.
I expect clients of the major brokers will receive very modest allocations.
there will be plenty for iwi and locals though
The Regional Council confirmedthat all Hawke’s Bay residents, including local iwi,wanting to buy shares in Napier Port would be offered aguaranteed minimum allocation of shares
I wonder if there is some possible conflict in that though with the main man aHon Rick BarkerbeingChiefCrown Negotiatorwith theMinister for Treaty of Waitangi.
Not sure if this has already been mentioned, but here we go anyway:
"Goldman Sachs' Owen Birrell told clients Napier Port was New Zealand's fourth largest port for handling shipping containers and sixth biggest when it came to bulk cargo.
The company was said to expect $NZ104.6 million ($100 million) revenue in the 2020 financial year, $NZ43.3 million operating EBITDA and $NZ21 million in profit after tax.
Birrell told clients the port was worth $NZ518 million to $NZ616 million in terms of its enterprise value, or 12 to 14-times forward earnings." - AFR
The brokers sound like, Craigs, Forsyth Barr and JB Were. Forsyth Barr have decent exposure in the Hawkes Bay.
heres the link
https://www.afr.com/street-talk/napi...0190627-p521r4
pot trading at pe of 44 so plenty of upside a lol
i see in the AFR again today they saying the aussies will bid the price up in ipo to make sure nobody gets it cheap because they can cause its a infrastructure yield play.
I dont like the fact the port is paying the council 50 - 60m special div just before the ipo thats money could have been spent in the upgrade. or are using ipo proceeds to pay them lol
This could be the next one on the block....
https://www.odt.co.nz/business/owner...napier-listing
I guess the real question is what the best comparator is.
If its POT then the sky's the limit for the price as POT have a huge PE (and multiplier to revenue). The pricing mentioned earlier in this thread indicates its price-point is more expensive than Southport but below PoT. If you use southport multiples, you don't get to the $500m+ pricepoints being mentioned.
SouthPort
Revenue of $40.7m (to Jun 2018)
Operating profit before financing $13.8m
Net surplus of $9.7m
Net Assets $40.1m
Market Cap (28 Jun) $177m = Historical PE 18.2, 4.7x revenue.
Half yr to Dec2018. Revenue up but profitability down slightly
Port of Tauranga
Revenue of $283.7m
Operating result before interest, tax and equity accounted $129.3m
Net Assets $1.12b
Net surplus $94.3m
Market Cap (28 Jun) $4.31b = Historical PE 45.7, 15.3x revenue
I think part ipo you have to factor the massive demand that will push the price up. Market sentiment will be huge imo
True, but they're not raising a massive amount of money.
Agree its no POT, but they state that they want money for growth capacity, and they're subject to land value increases. With plenty of demand for nz products, and primary industry in the area, I guess it will be a good short, medium or long term hold.
https://www.napierportshareoffer.co....-Offer%2f#open
Only for napier residents
Does anyone have estimates of share price this could attract once listed??
FY18
Revenue ~93m
NPAT ~17.4m
Op Cashflow ~28m
Debt 80m
Should be a 300-400m valuation.
Solid, boring and probably overhyped... I'd buy in if valued at lower end of 300...
Knowing how it usually goes will likely end up closer to 500.
They need re $190 million for this
6 Wharf will be a multi-purpose 350 metre length wharf, planned to be located along the northern face of the existing container terminal. The 6 Wharf expansion project includes a dredging programme which will create a new vessel turning area. The project has received all resource consents expected to be required, with other construction related consents such as building consents still to be obtained.
The key operational benefits of the 6 Wharf expansion project include:
- Reduced congestion: 6 Wharf will improve operating efficiency by reducing secondary vessel movements (temporarily moving vessels off wharves to accommodate other vessels) by an estimated 100 movements per year
- Ability to handle larger vessels: 6 Wharf will be able to handle container ships up to 320 metres in length and cruise ships up to 360 metres in length
- Extending the Port’s container vessel capacity
- Allowing berthing for larger container vessels 24-hours per day
- Operational agility: 6 Wharf will be used for both container and cruise ships, and will be capable of supporting twin lift gantry cranes if required in the future
- Operational resilience: 6 Wharf’s design improves the Port’s potential resilience to a significant seismic event
Bit of news in the Herald this morning re the Napier Port float. 4% expected yield.
c.f.
MMH 4.14%
POT 4.07%
SPN 5.47%
Doesn't sound very exciting. Will it be in an index? Probably worth stagging if bigger institutional investors have to buy more but the amount you might get allocated probably doesn't make it worthwhile. Although infrastructure and utility assets appeal to my conservative nature. Although accepting 4% means my retirement savings in theory need to climb from $1mill at 7% to $1.75mill at 4% not looking likely at this stage especially as acceptable yields keep dropping. That's right I am hoping for $70k before tax from my retirement savings. Probably just enough to not be entitled to any national super when I retire.
seems fairly priced for the times. probably be huge demand because of the current climate for infrastructure type stocks i imagine
Or would u be better just to buy POT shares?... what’s hb got? Logs and apples, both will prob be already on long term arrangements through POT?... will it be able to compete, looks like a volume game to me...
The apple industry from memory will grow around 15% per annum for Hawkes Bay, that is if they will not plant any new trees. We all know that new trees are being planted all the time, with a new huge farm changing from livestock to apples and vineyards getting vines removed and replaced with apples. I am picking within the next 5 years apples will easily double in quantity if not treble. The only thing I cannot understand is where is the labour coming from to collect all these apples. This year we have seen a huge amount of apples left on the trees, due to maturity issues and an undersupply of pickers. The majority of orchardists blamed the government stopping overseas pickers coming in to collect the fruit.
I don't know what will happen with the logs, but a friend mentioned that logs should not change too much, as the logs heading overseas are not the best quality logs
My intention will still be to purchase a few thousand shares in the port. I would prefer the Napier Port to be primarily owned by the people of Hawkes Bay.... Well at least 50% of it including council.