Craft beer brewer Moa has today confirmed it will be going ahead with a listing on the New Zealand Stock Exchange as it seeks to raise up to $16 million.
The company, which will use new capital to fund an expansion of its Blenheim brewery, announced details about its initial public offering at a media conference in Auckland this morning.
Shares will go on offer at $1.25 per share, open to institutions and the public from October 19 until November 8.
The shares are then expected to start trading on the NZX on November 13.
A total of 12.8 million shares, including oversubscriptions, will be offered to new and existing shareholders. The minimum application is for $1,500 worth of shares.
Moa expected to have a market capitalisation of approximately $38 million following the IPO.
The company will not pay dividends for the period covered by the prospectus.
Moa chief executive Geoff Ross said the response from retail brokers and a range of New Zealand institutions had been positive with the offer oversubscribed by 103 per cent. A prospectus has been lodged with the NZX, he said.
Ross said it was an exciting day for the company, not just because it will become New Zealand's first locally listed brewery since 2009, when Lion delisted after being purchased by Japanese brewer Kirin.
"More importantly, we are about to take the first steps in taking New Zealand's beer brand global," he said.
The company will pay $1.6 million in float costs, to cover NZX firm brokerage and commission fees, listing fees, and other costs.
Of funds raised, about $6.1 million will be invested in building a new brewery. Moa will also use funds to support increased working capital and marketing activities.
Moa's pre-float shareholders include the Business Bakery - which is co-owned by Moa chief executive Geoff Ross and has a 42 per cent stake - Pioneer Capital and Allan Scott Wines.
Following the IPO, the existing shareholders would own 61.58 per cent of 30.4 million total shares.
Earlier this year Moa general manager Gareth Hughes said the firm was seeing strong growth, with domestic sales doubling year-on-year and export revenue surging by close to 200 per cent a year.
Its main export markets include US - where it sells in 32 states - and Australia. Moa also exports to Finland, China, Singapore, Cambodia and Vietnam.
The company was founded in 2003 by Josh Scott, the son of well-known Marlborough winemaker Allan Scott.
Craigs Investment Partners and Forsyth Barr are the joint lead managers for the Moa offer.