Allied working up an appetite for float

One of the country's biggest employers, Allied Work Force, will raise $11.4 million when it lists on the stock exchange next week.

Offering $1.50 a share, the labour hire company will list with a market capitalisation of $39.2 million.

The offer opens on Monday and the company expects its shares will be listed on July 6.

Allied Work Force started 17 years ago when its managing director and main shareholder, Simon Hull, set up a casual workforce business from a rented office in Penrose, Auckland.

It now has 21 branches, employing 90 staff, and from a pool of 8000 daily places workers across a range of industries including construction, factories, transport and food processing. Based on the number of IRD returns it filed each year, Hull believed it was one of the largest employers in the country.

In the year to March 31, it is projecting a net profit after tax of $3.1 million on revenue of $74.2 million.

Hull said the business had grown rapidly through demand for more flexible labour arrangements.

And with the unemployment rate below 4 per cent, his crews were in heavy demand.

This year, it expected to supply 4.4 million hours of work to its 6000 client businesses.

Early this year, the company boosted its manpower by buying Wellington-based Quin Workforce, following up its acquisition of Far North Labour Hire last year.

Chairman Ross Keenan said the company believed its growth was far from over and part of the reason for the listing was to position it for more acquisitions.

Also on the board is Hull, Allied's chief executive, Greg Webster, and independent director Ted van Arkel.

Keenan said Hull would retain a 66.8 per cent stake in the company after the IPO and would continue to lead the business through its next phase of development.

"At this stage. he is only selling down to the extent required to meet the spread requirements of the NZX and to provide some liquidity in the market."

The company expected to pay dividends of 70 per cent to 80 per cent of net profit after tax, subject to prudent future investment requirements.

ABN Amro Craigs is the lead broker.

Time and a half

* Allied Work Force started 17 years ago from a rented office in Penrose, Auckland.
* It now has 21 branches nationally, employing 90 staff, with a pool of 8000 workers.
* It has 6000 clients.
* The crews work in a range of industries including construction, factories, transport and food processing.