Scales Prospectus Registered

Scales Prospectus Registered

An investment in New Zealand’s primary industry Investors will soon be able to own a stake in Scales - a large, diverse and growing New Zealand agribusiness group.

Christchurch-based Scales Corporation Limited today registered a prospectus for the initial public offering of ordinary shares in the company. The prospectus and the investment statement for the IPO is now available at www.scalescorporation.co.nz.

Scales operates three divisions, Horticulture, Storage & Logistics and Food Ingredients. Scales’ Horticulture business includes Mr Apple, New Zealand’s largest fully integrated grower, packer and marketer of apples.1

Through its Storage & Logistics business, Scales has been providing essential services to the New Zealand primary sector for more than 100 years. Scales is an established market leader across all its businesses with solid customer relationships, efficient operating systems and an experienced management team.

The IPO comprises an offer of up to 100.8 million ordinary shares. The offer will raise up to $30 million of new capital which will provide Scales with flexibility for the future expansion of its business.

As part of the IPO, majority shareholder Direct Capital Investments Limited will sell down from its current 84 per cent shareholding, but together with its co-investors the New Zealand Superannuation Fund and ACC, will retain a cornerstone shareholding of 20 to 30 per cent in Scales following the IPO.

An indicative price range has been set at $1.60 to $1.85 per share. Based on the indicative price range, the company’s market capitalisation will be between $221 million and $251 million.

Based on FY2013 total own-grown and exported TCEs.

The final offer price is expected to be set on July 4 at the completion of a book build involving New Zealand brokers and institutional investors. Shares are expected to begin trading on the NZX Main Board on 25 July.

Scales Corporation chairman Jon Mayson says the offer is expected to receive strong support from both retail and institutional investors in New Zealand and offshore.

“Scales has an exposure to the key primary sectors in New Zealand across its three operating divisions, Horticulture, Storage & Logistics and Food Ingredients. We believe our diversity and exposure to a number of expanding export sectors is one of our key strengths.

“Scales has a highly experienced senior management team with an average tenure of more than 20 years with the sector knowledge, relationships and expertise to continue to develop the company.”

Mayson also highlights Scales’ strong recent track record of financial performance where it achieved an after tax profit of $20.4 million on record revenues of $272.8 million in the 2013 financial year.

The Joint Lead Managers for the offer are First NZ Capital and Deutsche Craigs. There will be no public pool. Interested parties should contact the Joint Lead Managers, their NZX Advisor or authorised financial adviser for a copy of the investment statement for the IPO.

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