Hirepool Cumberland St, Dunedin. Photo by Craig Baxter.
New Zealand's largest rental equipment business,
Hirepool, confirmed it will list on the NZX with the amount of
money being sought by the company making it one of the largest
floats this year.
Hirepool finalised the purchase of the former Dunedin-based
and previously listed HireQuip in May last year.
HireQuip had an emphasis on heavy equipment and Hirepool
concentrated on specialist small to medium-sized enterprises
The company said the issue share price of its shares would be
set after a bookbuild process following the prospectus
registration on or about June 16.
Deutsche Bank gave the company an equity value in the range
of $260 million to $320 million in pre-marketing research
released last week.
The Hirepool listing could be the second-largest initial
public offering New Zealand might see this year after the
float of Genesis Energy in April.
On listing, Hirepool may have a market value of about $300
million, with Next Capital retaining a minority cornerstone
shareholding, sources close to the sale process said.
Earnings before interest, tax, depreciation and amortisation
would be about $60 million in 2015, they said.
Deutsche Craigs, Macquarie Securities (NZ) and UBS New
Zealand were joint lead managers with ANZ Bank New Zealand as
The Deutsche Bank report said the company expected to post
revenue of $156.5 million for the 2015 year, a level near
which Hirepool had achieved previously.
Hirepool gained antitrust clearance to buy rival Hirequip out
of receivership in early 2013.
That sale was required to satisfy Hirequip's secured
creditor, Westpac Banking Corp, which was owed $117.8
At the time, Hirepool said it bought the business to gain
greater exposure to heavy equipment demand in Christchurch.
Hirequip's parent shareholding companies, Pacific Equipment
Solutions, PES Finance and Hire Equipment Group, were placed
in receivership in 2012.
Hirepool named Brian Stephen, former head of Hirequip, as
chief executive in March, promoting him from chief operating
officer. Former chief executive Mike Foureur, who joined in
2013, continued as a non-executive director.
At the same time it affirmed Ian Lewington as chief financial
Hirepool is majority-owned by former Hirepool chief executive
Tenby Powell and his wife, Sharon Hunter, one of the
principal partners in computer company PC Direct.
Australian firm Next Capital also holds a stake.