Chemby offer in November

Press, 26 October 1982, Page 31

Chemby offer in November

Chemby Industries. Ltd. is to offer 1,158.102 of its existing ordinary 50c shares for sale at 90c each on November 23, 22 per cent of its total equity, to achieve listing on New Zealand stock exchanges. the directors announced in a statement. Only 350.000 shares would be available for general sale through a public pool. The remainder would be allocated to selected stock exchange member firms for distribution among their clients, as a mean erf achieving the widest possible distribution. Details of the offer for sale would be contained in a prospectus to be registered on November 2. Applications to buy would be accepted from November 23 until November 30 or such later date as may be determined

unless the offer was earlier subscribed in full, they said. The full amount of 90c a share was payable on application. The sale is being managed and underwritten by the Auckland broking house of Jordan. Sandman. Smythe and Co. According to a Press Association report from Auckland the sale is being effected by an existing major shareholder, South Pacific Merchant Finance, Ltd. releasing about 22 per cent of tbe total equity capital of the company. Chemby's company secretary. Mr M. R. D. Baird, said the offer would provide a spread of shareholders sufficiently wide to satisfy the listing requirements of the stock exchange. Listing would not only pro-

vide the present shareholders with a wider market, but also would give the companyentry to a broader base of funding for a projected higher level of business. On the completion of the sale, two of the present proprietors of the company would retain ownership of 50 per cent of the paid-up capital. The other half would oe held by investors and staff members. Chemby Industries has an authorised capital of $10,000,000 and an issued capital of $2,600,917. The issued ordinary shares are at present in units of 100 c each, but it is proposed at an extraordinary meeting on October 29 that these be split into 50c shares. Mr Baird said in the statement that the company was forecasting a tax-paid profit

of $1,200,000 for the year which will end on March 31. Earnings in the 1982 vear were $1,137,478. At the March 31 balance date shareholders' funds stood at $5,945,302. and there were 37 shareholders. They were paid dividends totalling 14 per cent. The earning rate on capital was 44 per cent and the forecast rate for the 1982-83 year is 46 per cent. The forecast dividend for the 1983 year is 8.5 c a share (17 per cent). All issued shares of the company rank equally in all respects. The company says it proposes to pay dividends halfyearly. in February and August, and all shares will receive a dividend in respect of the half year to September 30. The payment will be

based on the forecast rate of 17 per cent. The directors said that share premium reserves of $459,427 were available under present legislation, but subject to court approval for distribution tax-free to NewZealand shareholders. At the offer price of 90c a share, earnings yield on the forecast profit is 25.6 per cent and dividend yield 9.44 per cent. Chemby Industries is the New Zealand-owned parent of a group of diversified companies trading in the manufacture and marketing of industrial raw materials, engineered products, energy utilisation products and services. The group consists of five trading subsidiaries and one \ associate company, and employs about 300 people.