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Excellent response to Delegat’s Group IPO

Published: Wed 19 Apr 2006 05:04 PM
19 April 2006
Excellent response to Delegat’s Group IPO
The Delegat’s Group IPO has achieved a strong response from investors, with applications in the priority and public pool in excess of the available number of shares. The response means that some scaling will be required on the public pool applications.
Delegat’s Managing Director Jim Delegat said the company was delighted with the response to the offer. “More than 3,600 people have applied for shares, including those with entitlements through sharebrokers and through existing links with the company.
“I am delighted with the success of the IPO, and with such a strong vote of confidence from investors,” Mr Delegat said. “We look forward to working with the shareholders, and to building on the solid foundations established for a world class wine company.”
The Executive Chairman of ABN AMRO Craigs, Neil Craig, said the offer had been outstandingly successful. “The priority and public pool was unusually large, at $15 million. To be over-subscribed speaks volumes for the overall support for Delegat’s.”
Proceeds from the IPO will be used to repay a portion of bank debt, provide working capital and fund the development of the group’s new $70 million Marlborough winery.
The offer involved the issue of 32.14 million new shares at $1.40 each. Westpac Institutional Bank has been Adviser and Lead Manager, and ABN AMRO Craigs Co-Lead Manager, Organising Participant and Underwriter. Jim and Rose Delegat remain as 68 percent shareholders of the listed company and did not sell any shares in the float.
ENDS

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