Pacific Brands share float price known this week

Investors in the blockbuster transtasman Pacific Brands float will this week discover how much they are paying for their shares.

The institutional bookbuild to set the price starts today and finishes on Wednesday.

Pacific Brands says the price will be revealed when the company's shares begin trading on the ASX and NZX on Friday.

The company, known for brands such as Berlei, Bonds and Holeproof, is seeking to raise up to $1.46 billion.

Retail investors have paid $2.95 or A$2.60 a share and will get refunds if the final price is set lower.

The low end of the range for the bookbuild is A$2.25.

Retail demand is reported to have been strong and the 503 million shares on offer are expected to be split about 60:40 in favour of institutional over retail investors.

The vendors, private equity funds Catalyst and CVC Asia Pacific, are not retaining a stake in the company.

In the prospectus, the company forecasts a bottom line profit for the year to June 30 of A$41 million, rising next year to A$58 million.

It forecasts earnings per share of 19.5Ac and a final dividend of 13.4Ac for the year to June 30, 2005.

Macquarie Bank and UBS are the lead managers for the float. The co-managers in New Zealand are ABN Amro Craigs and First NZ Capital.