New Zealand’s Napier Port has completed its NZD 234 million (around USD 150 million) initial public offer (IPO) that would enable the port to fund its long-term investment program.
A listing ceremony was held at the port’s Breakwater Road site in Napier on August 20.
After ringing the bell to welcome in trading of the port’s shares on the New Zealand’s Exchange (NZX) under the ticker ‘NPH’, Chairman Alasdair MacLeod said the success of the IPO would allow investment in the port infrastructure.
“Thanks to the IPO, Napier Port can continue to invest in improving capacity. That includes the development of the multi-purpose 6 Wharf on the north side of the existing container terminal which will allow the port to support regional growth for the long term,” MacLeod commented.
“Meanwhile, the Regional Council has reduced its financial exposure to port growth and gained the capital for investment in the broader needs of the region, including the environmental protections that support Hawke’s Bay’s prosperity.”
In the IPO, Napier Port offered 90 million shares, representing a 45% stake in the company. All shares in the IPO were issued at the final price of NZD 2.60 per share, raising NZD 234 million for the port and its former 100% shareholder Hawke’s Bay Regional Council.
Of the capital raised, NZD 110.2 million is to be used to repay the port’s existing debt and provide cash and undrawn debt facilities sufficient to meet the port’s future capital requirements, including the construction of 6 Wharf. A further NZD 107.9 million of the capital raised in the IPO has enabled the Hawke’s Bay Regional Council, to realize a portion of its investment in the port.
On listing, Napier Port is approximately 90% New Zealand owned.
At the ceremony, Todd Dawson, Chief Executive, said he was delighted with the broad support for the IPO and the port’s longer-term investment plans.
“Napier Port thrives when the region thrives. It is for this reason that we have a strategic purpose of building a thriving region by connecting our customers and community to the world,” he said.
“Our new wharf will become a vital part of the networked infrastructure we manage; easing congestion, allowing us to host the larger container and cruise ships that are already visiting, extending our container capacity and giving us new options to manage diverse cargos,” Dawson continued.
Napier Port is New Zealand’s fourth-largest port by container volume.