Feltex confirms IPO and listing

1.00pm

Feltex Carpets Ltd, which yesterday announced the layoff of 53 workers, today confirmed the company would make an initial public offering in May followed by listing on the stock exchange.

The company, hit by the high New Zealand dollar, plans to lay off more of its 320 workers at its Christchurch factory as part of a revamp of the facility.

The company, controlled by Credit Suisse First Boston Asian Merchant Partners LP (Csfbamp), said it planned to raise $40 million through a public pool offer and via institutions.

Csfbamp will sell all of its shareholding in Feltex.

As part of the offer, a public pool will be available. Feltex bondholders would have the right to exchange their bonds for shares based on the face value of the bonds and the share price. In addition, bondholders would be offered further shares at a 5 per cent discount.

The final decision by Csfbamp and Feltex to proceed with the offer will be subject to market conditions.

First NZ Capital and Forsyth Barr Ltd have been appointed joint lead managers.

The company, one of the biggest carpet makers in Australasia, last month announced a net profit of $11.4 million for the six months to December 31, up $10.2 million on a year ago.

Half year revenue rose to $173 million from $166 million a year earlier as a result of buoyant markets in both New Zealand and Australia, the company said.

Feltex was listed in the mid-1980s as a conglomerate with more than 8000 staff.

- NZPA