Fliway shares up a notch on market debut

Fliway chairman Craig Stobo and company co-owner Gretchen Hawkesby at this morning's launch of Fliway shares on the NZX. Photo / Christopher Adams.

Fliway Group shares have fallen slightly below the $1.20 offer price after initially rising following the firm's sharemarket debut, the first NZX listing of 2015.

Shares in the Auckland-based transport and logistics provider were trading at $1.18, 1.7 per cent below the IPO price, just before midday.

The Auckland-based transport and logistics operator raised $25 million through selling 20.9 million shares, below the 22.7 million set out in the prospectus.

That included $9 million in new capital that will be used to reduce debt and cover the costs of the float.

The offer price, set through a bookbuild process with institutional investors and brokers, came in at the bottom of a $1.20 to $1.40 indicative range and valued the company at $54.5 million.

Fliway was acquired in 2006 by managing director Duncan Hawkesby, the son of former newsman John Hawkesby, and his wife Gretchen, the daughter of packaging magnate Graeme Hart, New Zealand's richest man.

The couple have retained a 54 per cent stake in the company.

With the IPO done and dusted, Duncan Hawkesby said this morning the focus was now on growth opportunities and "delivering on our numbers".

"Today really feels like the beginning of where we want to go, as opposed to the end point," he said.

Fliway, established in 1977, operates five warehouses and 11 branches around New Zealand.

It has a 50/50 joint venture with US-based freight giant UPS, while also maintaining relationships with logistics operators in Australasia, Europe and North America.

The company has more than 1000 customers and delivers more than two million pieces of freight in New Zealand annually.

It also handles roughly 9000 international shipments and 96,000 customs clearances each year, while employing 400 staff and operating 170 vehicles.

The company, chaired by Craig Stobo, is anticipating a gross dividend yield of 8.1 per cent in the 2015 calendar year.

It has forecast a net profit of $1.6 million from revenue of $85.3 million in the year to June 30, 2015.

Profit is projected to rise to $2.9 million in the six months to December 31.