Big Skellmax float heads rush of IPOs

By ELLEN READ

The year's first initial public offering (IPO) opens on May 27 when shares in new company Skellmax, a combination of Skellerup Industries and Flomax International, are launched.

One hundred million shares at $1.15 each are on offer in what is the country's largest IPO since 1999, when Contact Energy raised $1.12 billion.

The offer closes on June 14 and the shares are expected to begin trading on the Stock Exchange on June 19.

The shares are being offered by Viking Pacific Holdings, the company that rose from the once-high-flying Skellerup Group, which was restructured in 1998 after nearly collapsing.

Skellerup Industries is a manufacturer and distributor of rubber products for the dairy industry.

Flomax International manufactures vacuum pumps for the dairy markets and also has a significant presence in the United States market for truck-mounted vacuum pumps.

Their combined investment statement and prospectus were registered with the Companies Office yesterday.

It forecast net profit after tax for the year to June next year of $12.4 million, with earnings before interest and tax of $20.8 million.

The price/earnings ratio was forecast at 9.2 for that year.

There are six known initial public offerings in the pipeline between next month and the first quarter of next year, a flood by recent standards, and more announcements are expected.

The Skellmax organising broker is ABN Amro and the offer is fully underwritten by ABN Amro Rothschild. Priority allocation of 1.5 million shares will be made to Skellmax employees and directors and Viking Pacific shareholders.