By PAUL PANCKHURST
The transtasman share float of Repco - a car parts chain with 91 New Zealand stores - seeks A$405 million ($469 million) from investors.
The 81-year-old company plans to list on the Australian and New Zealand stock exchanges on November 20 with a market capitalisation of A$442 million.
Announcing
the float yesterday, Repco said there would be no public pool for the offer, which opens next Thursday and closes on November 11.
In New Zealand, the retail side of the offer will be available only through First NZ Capital Securities and ABN Amro Craigs.
Repco employees - there are more than 800 in this country - can buy shares through a priority pool. The price per share is A$2.65.
Repco reported earnings before interest, tax and amortisation of A$55.1 million for the year to June 30, up 12 per cent on the previous year. Its sales were A$742 million.
The company is forecasting a 10.2 per cent growth in ebita this financial year and the issue price of the shares in the float is at a multiple of 12.6 to forecast earnings.
The final dividend for this year is forecast to be 7Acps and would be fully franked in Australia and imputed to "at least" 50 per cent in New Zealand.
The float will see three private equity investors - Gresham Private Equity, GS Private Equity, and Macquarie Direct - sell out completely.
The trio hold 83 per cent of the company. The directors and management of Repco will sell down from 17 per cent to 8.4 per cent.
The vendors bought Repco from Pacific Dunlop in August 2001 for A$252 million - or A$190 million below the float's value.
The company cites big progress over the past two years in rationalising distribution networks, improving working capital, and reducing interest costs by refinancing debt.
Asked to speculate on the likely take-up of the offer, managing director Peter Mummery said yesterday: "We would expect New Zealand to take at least its fair share."
Repco's adviser, Credit Suisse First Boston, reaps A$4.5 million from the float. Underwriters and joint lead managers ABN Amro Rothschild and UBS will earn up to A$13.5 million.
