Hirepool plans dual listing

Hirepool has announced it intends to raise between $175 million and $262 million in an initial public offering, to become dual listed on the stock exchanges of New Zealand and Australia.

Hirepool, which bought Dunedin-founded HireQuip last May, is now the country's largest equipment-rental business, with 58 outlets around the country.

Hirepool will issue up to 120.1 million new ordinary shares to raise $135 million, plus sell existing shares to raise a total of up to $262 million, to be used for paying debt, buying more shares in a majority-owned subsidiary and paying for the offer.

While some long-term shareholders will sell their stakes, existing 64% shareholder Next Capital and its co-investors expect to retain between 20% and 35% of Hirepool's ordinary shares.

The indicative share price range is $1.10 to $1.50, with the final pricing determined by June 24, the offer closing July 8 and dual listing expected by July 11.

Hirepool chief executive Brian Stephen said Hirepool was now in a position to capitalise on economic growth and the increasing number of major infrastructure and construction projects. Nineteen projects next year include national roading, the SkyCity Convention Centre and the Christchurch rebuild.

He estimated that in the coming decade there would be about $120 billion in future projects, and the timing of capital expenditure on fleet replacement during the next two years was critical.

Hirepool's revenues are projected to be $140.6 million for the current financial year to June, and to grow to $155.6 million during 2015.

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