10.06.2014

Hirepool floatation confirmed

New Zealand based rental company Hirepool has confirmed that it will register a prospectus on Monday for its long rumoured Initial Public Offering. The float is expected to raise around $260 million.

Hirepool is 59.5 percent owned by Tenby Powell and Sharon Hunter of Hunter Powell Investments, with Sydney-based private equity firm Next Capital, which acquired it in 2006 in a $172m deal holding the minority stake. Next also acquired competitor Hirequip when it went into receivership in 2012, and merged it into Hirepool. Both Next Capital and Hunter Powell are expected to retain minority holdings in the public quoted Hirepool.

In March former Hirequip chief executive Brian Stephen was appointed chief executive of Hirepool with Colin Sinton replacing him as chief operating officer.

Hirepool's revenues declined by 7.6 percent in the 2014 financial year in spite of the improving economy. The company is however forecasting operating profits in the region of $60 for the current financial year. The IPO will be led by Deutsche Craigs, Macquarie Securities and UBS. ANZ Bank is a co-manager.