Napier Port hopes to raise up $234m in an initial public offering of 45 per cent of the company

Monday, 15 July 2019

Napier Port hopes to raise between $204 million and $234m in an initial public offering of 45 per cent of the company.

The shares will be offered at and indicative price of $2.27 to $2.60 a share. The shares are due to list on the NZX on August 20.

Hawke's Bay residents, ratepayers, port employees and certain iwi entities will have the first opportunity to apply for shares between July 23, and August 5.

The final price will be set by following a institutional investor bookbuild managed by the joint lead managers Deutsche Craigs and Goldman Sachs, expected to take place on August 6 and 7.

Any shares not taken up will be offered to sharebrokers until August 16.

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Chief executive Todd Dawson said money raised would be used to expand the port and allow it to service larger container ships and cruise ships.

'The centre piece of our planned investment is the new multi-purpose 6-Wharf, a new 350 metre wharf on the north side of the current container terminal,' Dawson said.

The existing wharves are experiencing congestions, with ships that are already berthed often needing to park outside of the port to allow access to larger ships, like cruise ships, Dawson said.

Most of the cargo that moved through the port was for export, with imports accounting for only 21 per cent.

Logs represent 55 per cent of exports, and timber and woodpulp take up another 19 per cent. Pip fruit and meat contribute 12 per cent to export cargo.

Imported products include fertiliser, fuel and cement.