NZX set to get its 6th new listing for 2021 with Vulcan Steel

Vulcan will debut on the NZX tomorrow. Photo / NZME

The NZX will get its sixth new listing so far this year with the debut of Australasian steel distributor Vulcan Steel tomorrow.

The company will list on both the ASX and NZX after an initial public offer process that has involved 42 or so existing shareholders selling down their stakes by 40 per cent.

The shares for the dual listing have been pitched at A$7.10 ($7.41) each which would give the company a market capitalisation of A$933 million, or just under a billion in New Zealand dollar terms.

The ASX will be Vulcan's primary listing.

Chairman Peter Wells is the biggest shareholder with 23 per cent.

Vulcan started with an initial staff of six and has grown organically, with staff now numbering 830.

The company, which counts Steel and Tube to be its main competitor in New Zealand, and BlueScope, Infrabuild and Amari in Australia, has its own fleet of trucks and several purpose-built sites.

"It's a distribution play rather than steel," Jones said.

The IPO process had attracted a good mix of Australian and New Zealand institutions, as well as retail investors.

The company forecasts a dividend yield of 4.5 to 6 per cent, with revenue of A$810m, and a net profit (before share float costs) of A$73.7m in the current year to June 2022.

Vulcan supplies steel and steel products to about 12,000 customers in Australia and New Zealand. It operates from 29 sites, 16 of which are in Australia.

NZX newcomers - How they fared:

Feb 11: Third Age Health, a compliance listing, last traded at $3.00 against its reference price of $2.15.

Feb 25: NZ Automotive, a compliance listing, last traded at 82c (reference price $1.30).

Mar 5: My Food Bag last traded at $1.19, down from its offer price of $1.85.

May 23: DGL Group last traded at $3.18, more than triple its offer price of $1.00.

Oct 20: Greenfern, a compliance listing, last traded at 28.5c (25c reference price).