Airwork shares take off as trading begins

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Shares in newly listed helicopter leasing company Airwork have risen 13c or 5 per cent in early trading.

Airwork's shares were issued at $2.60 a piece in a $37.5 million capital raising that closed off last week.

They began trading at 11am this morning on the NZX and had risen to $2.73 by 11.05am.

More than $470,000 worth of shares changed hands valuing the company at $137 million.

Major shareholder Hugh Jones has reduced his shareholding from 90 per cent to 61.28 per cent through the initial public offer.

Airwork specialises in helicopter engineering and support, helicopter leasing and charters and fixed-wing operations, charter and engineering.

The company began its operations in Wellington in 1936 and now runs a head office out of Mechanics Bay in Auckland.

Airwork was listed in the 1970s, at which time Brierley Investments built up a substantial shareholding.

But by 1984 the enterprise wasn't performing and Hugh Jones formed a 50/50 venture with the late Timaru businessman Allan Hubbard to buy the company.

Jones bought out Hubbard four years later and took 100 per cent of the company.

A plan to merge Airwork with an Australian air services company and float it it on the Australian stock exchange in 2010 did not go ahead.

In September the company expanded into Europe, buying 14 rescue helicopters used by a German motoring organisation. Airwork owns a fleet of 35 helicopters in addition to the 14 bought from ADAC.

Helicopter maintenance, leasing and operations make up about half of Airwork's business.

As well, it maintains and operates a fleet of 17 fixed-wing aircraft which are primarily used to provide freight capacity for organisations in Australasia, including NZ Post and Toll Holdings, as well as charter operations.

Across the company, Airwork employs about 400 people. Airwork chief executive Chris Hart is the son of former All Blacks coach John Hart.