NZ's fourth-largest telco to be sold through NZX sharemarket float

Thursday, 19 November 2020

Vocus is better known to most Kiwis as the owner of the Slingshot and Orcon broadband brands.

The country’s fourth-largest telecommunications company – Slingshot and Orcon owner Vocus New Zealand – may be floated on the New Zealand stock exchange by the end of next year.

Australian owner Vocus said it planned to sell the company through an initial public offering by then, depending on market conditions.

Vocus said in a statement to the Australian Securities Exchange (ASX) that its board considered that the New Zealand business had significant opportunities that would be “better realised if Vocus New Zealand is an independent entity”.

Vocus NZ has 226,000 broadband customers, making it the third-largest player in the fixed-line market after Spark and Vodafone New Zealand, and is the fourth largest telco overall, after 2degrees.

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Vocus New Zealand chief executive Mark Callander says the company's primary listing will be on the NZX.

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It reported revenues of almost $400 million in the year to June and employs about 600 staff members.

Vocus did not say whether it might retain some stake in the firm, but Vocus NZ chief executive Mark Callander said a 100 per cent sale might be possible.

It was too early to say if Vocus NZ would change its name, but that would be one of the considerations that would need to be addressed, he said.

The company would be dual-listed on the NZX and the ASX, but the primary listing would be with the NZX, he said.

Speculation that ASX-listed Vocus might exit the business through an initial public offering has been circulating for months.

An earlier attempt by Vocus to sell the business through a trade sale to reduce its debt and gearing was canned in 2018 after the offers it received failed to meet its expectations.

Vocus has appointed Goldman Sachs, Jarden and Craigs as joint lead managers for the sharemarket float.

The company said it would provide additional details about its plan in February.