Financial analysis and equity research specialist Woodward Research today issued comments in response to public perceptions of potential assets sales by the government of New Zealand.
Nick Lewis, Senior Analyst and Partner at Woodward Research said, “The proposed Mixed Ownership Model, or asset sales, has become the defining issue of this election, yet we still see serious misperceptions of this crucial issue. Given its relevance, we felt compelled to offer impartial comments on the implications of asset sales for the average New Zealander.”
The government announced in January 2011 that if re-elected in November 2011, it would proceed with the initial public offerings (IPOs) of four state-owned enterprises (SOEs) including the three electricity generator/retailers Genesis Energy, Meridian Energy, Mighty, River Power, and the coal resource company Solid Energy. The government also said it would seek to further reduce its stake in Air New Zealand from its current 74% interest.
The announcement included two key points; firstly, that the government would maintain legal control of the four electricity companies by retaining at least 50.1% interest, and secondly, that the average retail investor in New Zealand would be “at the front of the queue” to gain access to shares in these companies when they come to market.
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Equity research specialist Woodward Research today issued a report on Trade Me (Report), the dominant online auction and classified advertising company in New Zealand owned by Fairfax Media (ASX:FXJ). Fairfax Media plans to raise $NZ363.5 million through the sale of 34% of Trade Me through an initial public offering (IPO) which closes on 6 December.
Woodward Research’s report concludes that Trade Me is now a mature company with strong cash flows and impressive profitability, and well able to support an attractive dividend. Woodward Research has valued Trade Me at $2.54 per share with a 12-month target price of $2.80 per share.
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Energy Mad (MAD.NZ) has successfully completed their initial public offering (IPO) and will list on the NZX on Wednesday (19 October 2011). Woodward Partners and Bell Gully were advisors to Energy Mad during the IPO.
Chief Executive and Co-Founder Mr Chris Mardon said becoming publicly listed was an important milestone for Energy Mad. “The IPO gives us the funding to continue to execute the business plan and strategy of the Company and provides profile and credibility for the Company, particularly in our United States and European markets”, he said.
Mr Mark Donnell, Director, Woodward Partners, said “We’re encouraged to see New Zealand investors backing a local growth company as it expands overseas.”
Congratulations to Energy Mad.
Woodward Partners completed a valuation of the New Zealand Crown’s royalty streams from the current producing fields and frontier basins. The report was completed by Woodward Partners for the Ministry of Economic Development. Today the report has been released into the public domain.
Link to Woodward Report – a full copy of the report is available to download.
There has been some media coverage:
NZ Herald – New energy plan: nod to oil and gas
Smart & accurate commentary by NZX CEO Mark Weldon re Charlies sale (source)
Note to entrepreneurs: your idea is not special (source)
A Ken Auletta profile of Facebook executive Sheryl Sandberg (source)
Chairman’s address to 2011 NZX Annual Meeting (source)
A very insightful take on the current changing state of the early-stage financing space (source)
Disrupting (financial) professional services (source)
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With the LinkedIn ($LNKD) IPO occurring today – I wanted to give some thoughts. Here they are:
LinkedIn ($LNKD) IPOed today closing at $94.25 for a market capitalisation of $8.9bn – at 31 December 2010 $LNKD had $92m of cash and no debt – so we will give $LNKD an Enterprise Value (EV) of $9.0bn.
Big result. On SecondMarket (private secondary market) LinkedIn shares had traded at $35 a share in March 2011. The IPO was priced at $45 a share. End of first day $94 a share. The IPO bankers – Morgan Stanley, Merrill Lynch and Allen & Company – may have some questions to answer about pricing. A lot of interest – a good IPO for the technology/internet sectors.
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