A roadshow for Napier Port is under way. Photo/Hawke's Bay Today.
A roadshow for Napier Port is under way. Photo/Hawke's Bay Today.
The so called "non-deal" roadshow for Napier Port's possible partial float has rolled on before its owner, the Hawke's Bay Regional Council, makes its final call in four to six weeks.
The council's advisers have been introducing the port and management to potential institutional investors here and in Australia inthe run-up to decisions around the sale of a minority stake in the company.
But contrary to a report in Australian Financial Review's "Street Talk", an ASX listing is not being sought.
At this stage, if the council goes ahead with the IPO, it will an NZX-listing only, a broking source familiar with the process, said.
The council wants to free up funds and the port has expansion plans that will require funding.
Last year, Napier Port's resource consent applications to build an additional wharf on its container terminal, and to carry out further dredging, were approved.
"Wharf 6" will allow more ships to visit, larger ships to berth and alleviate the growing congestion caused by increasing cargo volumes.
The port says building Wharf 6 by 2022 would "future-proof" the port for the future.
A report to council last year said the port needed $320-$350 million over 10 years for it to support the growing Hawke's Bay economy.
About half of that cost, or $142m, was for the construction of the new wharf.
The council last week voted to adopt additional protections for its majority ownership position in any future initial public offer (IPO) of shares in Napier Port.
It has established a new council-controlled organisation (CCO), to be called Napier Port Holdings Ltd, which would be the entity taking a minority stake in Napier Port to market.
If approved, an IPO could go ahead in June or July, or sometime after the August reporting season.
The sponsoring brokers are Goldman Sachs and Deutsche Craigs.
The council last year voted approved in principle in favour of a partial float, which would see 33 to 45 per cent of the port's shares sold.
Regional Council chair Rex Graham said at the time a minority share float was the most effective way to secure the port's future.
