Hirepool cancels IPO

Hirepool’s owners, Next Capital and Hunter Powell Investments, have pulled the IPO offer which had an indicated listing date of 11 July 2014 (see previous post on the listing here).

The following statement has been released by Hirepool’s owners:

Given the strength of the New Zealand economy and the positive outlook for Hirepool, Next Capital Pty Limited on behalf of the Next Capital Funds, have determined that they are comfortable retaining control of the Hirepool business

However, other sources are indicating that the proposed market cap was too high to get institutional investors interested (read articles in the Herald and NBR).

A recent spate of IPOs (and proposed IPOs) have given large investors increased bargaining power around price.

The owners of Hirepool have not ruled out a potential listing in future. At this stage Hirepool is forecasting a loss of $17.5m this financial year, but expecting to return to profit for the financial year ended 30 June 2015.

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