Hirepool's NZX float a big deal

Hirepool Cumberland St, Dunedin. Photo by Craig Baxter.
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 (SMEs).

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 co-manager.

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 million.

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 officer.

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.

ODT/directory - Local Businesses

CompanyLocationBusiness Type
The Gym StudioAlexandraNutrition
Forbury Corner Health CentreDunedinMedical Centres
Flavours Deli CafeQueenstownCafés
Dunedin South Vet ClinicDunedinVeterinarians