Fliway Group, the transport and logistics company, is understood to have been priced at $1.20 a share in the bookbuild for its $34 million initial public offering, the bottom end of the indicative range.
Existing shareholders Duncan and Gretchen Hawkesby will retain 54 per cent of the South Auckland-based company, market sources said.
The couple had planned to retain 30 per cent to 50 per cent of the company after the IPO, according to the prospectus lodged with the Companies Office this month. The shares had been offered in an indicative range of $1.20 to $1.40.
The Hawkesbys will sell 20.9 million shares, below the 23.5 million minimum set out in the prospectus, to net $25 million.
A further 7.5 million of new shares were sold to raise $9 million in new capital, of which $6.5 million will be used to reduce the company's debt to $12.5 million, according to the investment prospectus.
Yesterday's pricing values the company at $54.5 million, based on the 45.4 million shares the company expected to have on issue after the IPO.
Hawkesby will remain as managing director of the company, which is forecast to have revenue of $85 million and net profit of $4.5 million in calendar 2015. The company expects to pay a dividend this financial year, amounting to between 50 per cent and 70 per cent of net profit, for a yield of about 7.8 per cent.
Craig Stobo is chairman of the company, while Alan Isaac has been appointed as independent director. The closing date for the offer will be April 1 and it's expected to trade on the NZX main board by April 9, with the first dividend due for payment in September this year.
The company's primary activities are transporting and warehousing freight throughout New Zealand and co-ordinating freight movements internationally, including customs clearance. It has 450 staff, 170 vehicles in its fleet, 11 branches and five warehouses around New Zealand.