ASB sec are absolutely hopeless for these kind of allocations, not counting them in.
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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