Feltex Carpets today launched an initial public offering (IPO) of its shares, in what it says will be the sharemarket's largest float in five years.
Feltex expects to be a top 30 stock when it debuts on the stock exchange on June 4, with a market capitalisation of between $254 millionand $284 million.
An indicative offer price range of $1.70-$1.95 has been set with a final price to be announced on May 24.
Between 145.6 million and 149.4 million fully paid shares are expected to be on issue after the IPO.
Feltex is projecting a gross dividend yield of 8.6 per cent to 9.6 per cent for the 2005 financial year. A projected divided of $9 million will also be paid in October for the second half of the June 2004 financial year.
The float came about because Feltex's owner of the past eight years, Credit Suisse First Boston Asian Merchant Partners, wants to sell its shareholding.
The issue is being jointly managed by sharebrokers Forsyth Barr and First New Zealand Capital.
A combined investment statement and prospectus is being registered with the Companies Office today.
In conjunction with the sale of shares, Feltex is also raising $50 million of new capital to assist with the redemption of bonds issued by the company in May 2003.
Current bondholders are being given an opportunity to participate in the offer with priority status and at a discounted price.
The company's chairman, Tim Saunders, said that he was pleased to see Feltex returning to New Zealand ownership given its history here.
"It is one of the country's iconic brands and we are delighted to bring it back to the sharemarket," he said.
Mr Saunders said that after the offer the company's senior management team will hold about 4.5 per cent of Feltex's shares, as as well as management option plans.
Feltex is one of the two largest manufacturers of carpets in Australasia with annual sales of over $310 million.
The company produces over 17 million square metres of carpet a year, representing a market share in Australasia of about 25 per cent.
Feltex Carpets operates six factories in New Zealand and four in Australia and also has a 50 per cent stake in the Australian carpet retailer Carpet Call.
