New listing to trade on Monday

Press, 31 October 1981, Page 19

New listing to trade on Monday

PA Wellington Arrangements are being finalised for the Stock Exchange listing on Monday of the big Hastings-based road transport and civil engineering group, Hawke’s Bay Transport Holdings. The company is believed to be the largest transporter of livestock in the country, and also has extensive interests in contracting and oil distribution. It also operates a 29 hectare horticulture block, and has a forestry involvement in Papua New Guinea and interests in data processing. Considerable interest will centre on the price that the shares will fetch when trading begins on Monday. The shares are 100 c units, and have previously traded at between 120 c and 140 c. However, they are expected to bring more than this once the market is established.

The company has a suffi-

cient spread of shareholders and will not require any special arrangements before listing to meet Stock Exchange requirements. At a function the deputy chairman (Mr K. U. McKay) said that the company was seeking listing to create a market for its shares. It had been a problem that as clients for the company left the district there was no ready market for their shares. Trustees for deceased estates also had difficulties in finding a true value for the shares.

Sales were so infrequent it had been difficult to gauge the proper market for the shares.

Prices realised by share sales in the past had borne little relationship to - asset backing and worth of the company- Listing would also enable it to increase its capital arising from the effect on inflation cost

of equipment and the requirement for greater working capital. The company has just undergone a capital reconstruction, involving conversion of specified preference shares and a bonus. •Mr McKay said this was to compensate existing shareholders for the modest dividends paid as the company expanded. He forecast the dividend cover on the enlarged capital (of 1,147,224 ordinary and 163,435 13.5 per cent preference shares) would be three times.

The company had recently replaced all its capital equipment as far as possible, and was now well equipped. “We’re well placed to meet; competition and any down-, turn in the economy,” he said.

An investment report from Renouf and Company, who are handling the float, estim-

ated the group’s profit for the year to September 30 would be $500,000 compared with $389,763 last year. The dividend forecast is 17 per cent.