Shares for an initial public offer for Metro Performance Glass have been pitched in a $1.65 to $1.90 range for an auction-style book build set to start today, market sources say. The offer is aimed at raising $237 million to $273 million.
It is understood the sale by Australian private equity company, Crescent Capital, and others, is aimed at creating a NZX and ASX-listed company with a market capitalisation of around $305 million to $352 million, one market source said.
At that price, Metro Performance would have a price to earnings ratio of 12.5 to 14.5 times, the source said.
The joint lead managers of the offer are Forsyth Barr, Macquarie Securities NZ and UBS New Zealand.
It is understood former Auckland International Airport chief executive and managing director Sir John Goulter has been appointed chairman and former Fletcher Building chief financial officer Bill Roest has been appointed to the board.
The company was bought with the $366.2 million paid by Australian equity firm Catalyst Investment Managers in 2006. It was founded in Auckland in 1987 and was previously known as Metropolitan Glass.
Ownership of Metro was transferred to its lenders for $181.5 million after the company breached its financial covenants in 2011.
Crescent Capital Partners, which reportedly bought about $50 million of Metro's debt in 2008, continues to own close to a 40 per cent stake, the Companies Office says.
Other shareholders are Anchorage Capital, JP Morgan, Portigon, Sankaty Advisors and Deutsche Bank. The selling shareholders expect to retain 20 per cent of their shareholding after the offer.