Freightways Share Offer Price Set at $1.60 Per Share

Freightways Limited has today announced that the final price and allocations of Shares in its Initial Public Offering (“IPO”) have been determined.

The final price for Shares has been set at $1.60 per Share. At the final price, Freightways will have a market capitalisation of $195.3 million and the IPO will raise a total of $141.5 million making it the largest IPO of a New Zealand company since 1999.

The IPO received a broad level of support from holders of Freightways Express Limited preference shares, Freightways employees and contractors, New Zealand retail brokers and New Zealand and Australian institutional investors.

“We’re delighted the Freightways IPO has been so well received”, Wayne Boyd, Chairman of Freightways Limited said. “Of particular note is the breadth and depth of institutional participation in the Offer. The Company will list with a well-balanced share register.”

At the final price of $1.60, the Shares are forecast to carry a gross dividend yield of 10.5% for the year ending 30 June 2004. “As well as providing investors with an attractive FY2004 forecast gross dividend yield, we believe that Freightways is well positioned to deliver investors continuing earnings growth”, said Mr Boyd.

In addition to the 10.9 million Shares allocated under the Exchange Offer, 21.2 million Shares have been allocated to institutions in New Zealand and Australia and the remaining 56.3 million Shares have been allocated to NZ retail investors under the Public Offer and to NZX Firms for sale to their retail clients. Demand from institutions, NZX Firms, and other investors participating in the book build represented 360% of the Shares available under that component of the Offer.

The offer of Shares pursuant to firm allocations from NZX Firms and institutional investors closes on Friday, 26 September 2003.

Dean Bracewell, Managing Director of Freightways Limited, said: “We’re very pleased with the success of the Offer to date. We were delighted that the sale by ABN AMRO Capital (Belgium) N.V. gives New Zealand investors the opportunity to own a slice of our business. We look forward to building a mutually rewarding relationship with our new shareholders.” He commented that the Exchange Offer to preference shareholders was fully subscribed to the maximum level of $17.5 million. “It’s good that we were able to acknowledge preference shareholders’ loyalty and support”, Mr Bracewell said.

ABN AMRO Capital (Belgium) N.V. retains a 19.2% stake in the Company, and will hold this stake for at least one year. “Whilst we chose to partially realize our investment in Freightways, we are a committed and enthusiastic shareholder and we will continue to play a role in Freightways through our board representation”, said Michael Taranto, representative of ABN AMRO Capital (Belgium) N.V.

Freightways Shares are expected to be listed on the NZSX on 29 September 2003.

First NZ Capital and ABN AMRO Rothschild acted as Joint Lead Managers to the Offer.

Application has been made to New Zealand Exchange Limited (“NZX”) for permission to list the Freightways ordinary shares and all of the requirements of NZX relating thereto that can be complied with on or before the date of distribution of this announcement have been duly complied with. However, NZX accepts no responsibility for anything in this announcement.

For further information contact:

Managing Director
Freightways Limited
Ph: (09) 571 9672
Fax: (09) 571 9671