Construction equipment hire company Hirepool announced yesterday a plan to raise between $175 – $262 million dollars in a dual listing on both the New Zealand and Australian stock exchanges.
Hirepool merged with its main competitor Hirequip last year, creating an ideal setting for the company to achieve further growth with its initial public offering.
Hirepool expects the shares will be priced between $1.10 and $1.50, however the final pricing will be determined on 24 June via an auction with institutional investors. The company’s float will have institutional and broker components, but there will be no public pool. Existing 64% private equity firm Next Capital will retain at least 20 percent of Hirepool after the share sale.
Hirepool’s Chief Executive Brian Stephen says that the company is now ideally positioned to capitalise on New Zealand’s strong economy, and the increase in major civil and construction projects.