Clothing retailer Postie Plus shares debuted on the stock market today at a 37 per cent premium to their issue price.
Postie Plus shares, issued at $1 opened at $1.37 this morning before easing back to $1.32 by 10.30am.
Christchurch-based Postie Plus' $20 million initial public offering (IPO), will give it a
market capitalisation of $40 million. Postie Plus is the first South Island business to float since Dunedin biotech outfit Botry-Zen last year.
Managing director Paul Young said the money raised would be used to repay debt, enabling the company to borrow more for expansion and purchases.
As well as the Postie Plus chain of value for money clothing stores the company includes Rendells speciality department stores in Auckland, Babycity infant stores and Arbuckles manchester stores.
The share float sees Westport's Dellaca family ceding control of the company for the first time. Their shareholding in the company will be diluted from 75 per cent down to 34 per cent.
- NZPA
