Hirepool confirms it will list on market

Hirepool — New Zealand’s largest equipment rental business — has confirmed its plans to list on the sharemarket and says a prospectus for the offer will be lodged this month.

The company said the issue price of its shares would be set after a bookbuild process that would follow the prospectus registration “on or about” June 16.

Deutsche Bank gave the company an equity value in the range $260 million to $320 million in premarketing research released last week.

The Hirepool listing could be the second-biggest initial public offering New Zealand will see this year, after the float of Genesis Energy in April.

“All shares offered by Hirepool will be at the issue price and will be fully paid ordinary shares which will rank equally with each other and all existing shares,” the company said.

Hirepool’s sales declined by 7.6 per cent in the 2014 financial year despite a firming New Zealand economy, according to the Deutsche Bank report.

But investments being made by the company, coupled with an increase in construction projects, are expected to bolster the business in the next financial year.

The Deutsche Bank report says the company — which rents equipment such as vehicles, portable toilets and catering gear — expects to post revenue of $156.5 million for the 2015 financial year, a “level near which Hirepool has achieved previously”.

Fund managers have been told that Hirepool will post a $25.6 million profit in the 2015 financial year, according to the

The company, which acquired New Zealand rival HireQuip last year, is majority owned by former Hirepool chief executive Tenby Powell and his wife, Sharon Hunter, who was one of the principal partners in computer company PC Direct. Australian private equity firm Next Capital also holds a stake.

Deutsche Craigs, UBS and Macquarie Securities are managing the offer.