Delegat's debuts at 9pc premium to IPO

Wine company Delegat's Group today debuted on the sharemarket at a 9 per cent premium to its initial public offer (IPO) price.

The shares opened at $1.52, compared with an offer price of $1.40 per share, and quickly shot up to $1.57 -- up 12 per cent.

The group offered 32 million new shares in a $45 million IPO that closed oversubscribed on April 13.

Today's price gives Delegat's a market capitalisation of around $157 million.

Delegat's was established by Nikola and Vidosava Delegat in 1947. The family and associates retained a 68 per cent stake in the float.

Delegat's has projected its operating revenue would rise from $58 million in 2005, to $80.8 million in 2006, and $122.5 million in 2007.

The float has been anticipated by the market for some time. It was delayed due to a protracted and messy takeover battle for Oyster Bay Marlborough Vineyards.

Delegat's finally won a majority stake in Oyster Bay early this year.

- NZPA