Gullivers to list within a month

By CHRIS DANIELS

Gullivers Travel Group, owner of the Holiday Shoppe and United Travel brands, says it hopes to be listed on the New Zealand stock exchange within a month, as it prepares to raise $104 million in a public share float.

The travel conglomerate has this week registered the prospectus for its initial public offering (IPO), opening next week.

Gullivers said yesterday that of the shares allocated, 70 per cent had been taken by New Zealand investors, with the rest mainly going to Australia.

Locally, 60 per cent of the shares have been bought by institutional investors, with the remaining 40 per cent tagged for the retail investment market.

There is no public pool of shares, which are priced at $1.60 each.

UBS executive director Robert Sinclair said the new Australian investors were familiar with listed travel agents such as the Flight Centre, but Gullivers would be pretty much unique on the New Zealand stock exchange.

Company founder and managing director Andrew Bagnall said yesterday it was true that he had been trying to sell the company in a private sale, but had not succeeded.

That failure was not because of price, but for other reasons, including his wish to remain involved.

Bagnall has committed to staying on at Gullivers as managing director for a minimum of 18 months, but says he wants to stay with the company in some capacity after that.

Another aspect to Bagnall's continued involvement is his financial stake in the company. On listing, he will own 28.8 per cent of Gullivers, with a further 7 per cent owned by existing shareholders.

This 35 per cent stake cannot be sold until after the release of the company's results for the year to March 31, 2006.

On the $1.60 per share offer price, Gullivers, which will trade on the NZX and ASX, will have a market capitalisation of $160 million. It has a forecast gross dividend yield of 8.4 per cent next year and 8.7 per cent the following year.

Bagnall has assembled a board chaired by Jeff Todd and including Business Roundtable chairman Rob McLeod, SkyCity chairman Rod McGeoch and former TVNZ chief executive Rick Ellis.

Gullivers, which now makes almost all its money from outbound holidaymakers, wants to earn more from the annual flow of more than two million visitors to this country.

Its ownership of the local branch of internet portal Zuji is part of this plan, since overseas travellers can use it to buy tickets Downunder.

On offer

* Offer opens: November 22.

* Offer closes: December 7.

* Expected listing on NZX and ASX: December 15.