Napier Port IPO

[SilverBack]

There appears to be two lines of thought.
Those who think they will get an allocation are keen,while those who realise they will not, think it is way overpriced.
No surprises here.

Not really. Any intelligent investor will invest based on the Prospectus and their assessment of forward prospects. This is not a cheap issue and I have decided not to participate but will track it instead. Probably the SP will increase initially, as people who missed out buy in and institutions/funds top up to meet their criteria. I perceive risks with the new wharf construction and use of the same, as has already been noted. The port's dependency on log traffic is also a concern given the depressed timber prices internationally at present. Previous experience indicates that foresters will hold back on felling trees and let the trees add volume rather than sell at low prices (a percentage at least). That will translate quickly into reduced log volumes at the port.

[nextbigthing]

Not really. Any intelligent investor will invest based on the Prospectus and their assessment of forward prospects. This is not a cheap issue and I have decided not to participate but will track it instead. Probably the SP will increase initially, as people who missed out buy in and institutions/funds top up to meet their criteria. I perceive risks with the new wharf construction and use of the same, as has already been noted. The port's dependency on log traffic is also a concern given the depressed timber prices internationally at present. Previous experience indicates that foresters will hold back on felling trees and let the trees add volume rather than sell at low prices (a percentage at least). That will translate quickly into reduced log volumes at the port.

Log prices might not be such an issue as large players harvest more to maintain profit apparently -

[SilverBack]

[QUOTE=nextbigthing;767053]Log prices might not be such an issue as large players harvest more to maintain profit apparently -

[percy]

Not really. Any intelligent investor will invest based on the Prospectus and their assessment of forward prospects. This is not a cheap issue and I have decided not to participate but will track it instead. Probably the SP will increase initially, as people who missed out buy in and institutions/funds top up to meet their criteria. I perceive risks with the new wharf construction and use of the same, as has already been noted. The port's dependency on log traffic is also a concern given the depressed timber prices internationally at present. Previous experience indicates that foresters will hold back on felling trees and let the trees add volume rather than sell at low prices (a percentage at least). That will translate quickly into reduced log volumes at the port.

Agree with your sensible post [and agree with my post too,]..

[bull....]

i reckon this will be massively over subscribed your be lucky to get many at all

[percy]

i reckon this will be massively over subscribed your be lucky to get many at all

Agreed.
I believe they will be included in the top 50,which will make things interesting.

[bull....]

Agreed.
I believe they will be included in the top 50,which will make things interesting.

could well be in time , if the expansion of the port solves the cruise ship issue they will attract more log vessels as the cost of port visits will fall.

[CC1]

Milford Blog: A closer look at Port of Napier’s IPO


https://milfordasset.com/insights/a-...rm=Read%20More

[percy]

Milford Blog: A closer look at Port of Napier’s IPO


https://milfordasset.com/insights/a-...rm=Read%20More

A good article.
Thanks for posting the link.

[Ricky-bobby]

Interesting, thanks for posting. What do u think of? The remaining $79m to $108m will be returned to the council to be recycled into other projects. Also just flew over it this arvo, looks like they have a container storage area by the airport. So limited for space at the port already?... I’m deciding if I will go for this or stick with established/proven POT. Torn....