Freightways Confirms IPO Launch

Freightways Limited has today launched its Initial Public Offering (IPO), which is expected to raise approximately $138 million to $165 million from New Zealand retail investors and institutional investors in New Zealand and Australia.

Freightways is a leading provider of express package services throughout New Zealand, with complementary information management and business mail operations. Its flagship brand, New Zealand Couriers, has operated in the express package industry for nearly 40 years, having been a pioneer of the industry in New Zealand. Today, Freightways operates through its leading brands such as New Zealand Couriers, Post Haste Couriers, SUB60, DX Mail and Online Security Services.

Freightways’ Chairman, Mr Wayne Boyd, said, “We are delighted that the IPO has now been launched. The Company has performed strongly in each of the last five years. Revenue growth has averaged 6% per annum since 1999 and operating earnings growth has averaged 16% per annum over that period. We believe the IPO will be extremely well received by the investing public.”

The IPO is proceeding by way of a sale of 77.5 million ordinary shares (representing approximately 70% of the Company) by its largest shareholder, ABN AMRO Capital (Belgium) N.V. as well as a primary raising by the Company of $17.5 million. The proceeds of the primary raising will be used to facilitate the redemption of Freightways Express Limited’s redeemable preference shares which has previously been announced.

The IPO will open on Monday, 1 September. An indicative price range of between $1.55 and $1.90 has been set, with the final price per share to be set by way of a bookbuild process involving institutional investors and NZX Firms prior to 15 September. There is an exchange offer of $17.5 million of ordinary shares for existing Freightways Express preference shareholders as well as a public offer of $20 million, which is also open to preference shareholders and Freightways employees and contractors. The exchange offer and the public offer close on 12 September. The balance of the offer (including institutional and retail firm allocations) closes on 26 September.

ABN AMRO Rothschild and First NZ Capital have been appointed Joint Lead Managers of the IPO, while ABN AMRO Craigs Limited and Forsyth Barr Limited have been appointed Co-Managers.

For further information contact:

Managing Director
Freightways Limited
Ph: (09) 571 9670
Fax: (09) 571 9671