WAGNERS ON SOLID GROUND IN TOP DEBUT
SHARES in Toowoombabased Wagners have jumped 25 per cent on debut on the stockmarket, as investors bank on a future in the seesaw construction materials sector.
Wagners, started 28 years ago by the Wagner family, raised $196 million in the offer with shares priced at $2.71. The stock was tightly allocated and leapt to $3.31 on opening before closing at $3.40.
The 530-staff company makes cement and other construction materials such as reinforcing steel, with risks listed in the prospectus including any drop in infrastructure work or a construction downturn.
The jump saw the personal stake of Wagners chairman Denis Wagner worth $75 million, the same as brothers and co-founders John and Neill, while fourth sibling Joe’s was worth $78 million.
The Wagners retain about 55 per cent of the company but Denis Wagner said roughly 6000 new investors came on board.
“In the fullness of time, we think we’d like to ensure that everyone does very well,” he said.
Despite the first-day spike, he maintained the company should not have shot for a higher price before listing and thereby raised more funds.
The stockmarket company listed excludes some property assets and Wagners’ recent flagship project, a private airport near Toowoomba.
The Wagner family received $96 million in the float.