$300m public offer tipped for Hirepool

Hirepool is expecting a big boost from the Christchurch rebuild. Photo by Craig Baxter.
Hirepool is expecting a big boost from the Christchurch rebuild. Photo by Craig Baxter.
Hirepool is being tipped for a $300 million initial public offering in coming months, buoyed by work expected from the Canterbury rebuild and the expanding Auckland housing market.

Hirepool, which bought Dunedin-founded Hirequip in 2012, has since consolidated Hirequip and Hirepool outlets under the Hirepool banner.

One source, who did not want to be identified, said both became over-extended and indebted before the global financial crisis, but the subsequent consolidation had ''hugely trimmed down'' the two operations.

''With the consolidation [of fewer outlets], Hirepool has increased its market share and dominance, and has economies of scale,'' the source said.

With a 3.5% gross domestic product rise forecast for the year ahead, and without having to compete with Hirequip, Hirepool was ''in a good position'' to raise the $300 million capital ''with ease'' and make the most of the Canterbury and Auckland rebuild, he said.

Hirepool had hired Deutsche Bank/Craigs Investment Partners, Macquarie Capital and UBS to manage an initial public offering on the NZX in the first half of this year, sources told BusinessDay yesterday.

Rothschild-advised Hirepool, which is owned by Sydney-based private equity firm Next Capital, appointed the investment banks last week.

In July 2012, the companies which owned Hirequip were placed in receivership and the business was sold to Hirepool as a going concern.

At the time, the parent shareholding companies in receivership were Pacific Equipment Solutions Ltd, PES Finance Ltd and Hire Equipment Group Ltd.

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