A prospectus that was issued yesterday and filed on the New Zealand Stock Exchange revealed that Airwork, an aircraft leasing and maintenance company, was gearing up for an initial public offering. The New zealand-based company would be floating up to 15.4 million new shares. Airwork said in its prospectus that is was aiming to raise up to USD40 million when it goes public.
Details in the company's prospectus indicated that Airwork had priced its shares offered in the IPO at USD2.60 apiece. It would be listing on the New Zealand bourse by December 19 should a minimum amount of USD30 million was raised from initial order-taking. Airwork plans to use the ticker name "AWK" on the stock exchange and will be paying a USD0.14 dividend per share in fiscal year 2014 via two, USD0.07 dividend per share payouts.
Operating out of Mechanics Bay, Airwork generated most of its business revenues from lease of its 29 helicopter and 17 plane fleets. The company also providers services in aircraft engineering. The aviation company was founded in 1936 and now keeps a staff of around 400.
For this fiscal year, Airwork reported a profit of USD6 million, which was a significant increase from its USD1 million loss last year. Airwork's revenues also rose significantly up to USD118 million this year, comparing to USD110 million from last year.
According to a report published on Stuff.co.nz, Airwork owner Hugh Jones would be decreasing its 87.57% ownership stake down to 59.4% stake should the IPO be fully subscribed. On the other hand, Jones has no plans to underwrite the share sale, the report said.
Proceeds from the share sale would go towards repurchasing 3.8 million to 7.7 million shares of Airwork back from Jones for a maximum amount of USD20 million. Part of the proceeds from the IPO would also go towards repaying debt to affiliates and inject much-needed working capital to the company.
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