9 Mar 2015

Fliway Holdings to raise up to $44.5m in IPO

8:20 am on 9 March 2015

The owners of Fliway Group will sell at least half their interest in the freight management company, in the first share float of the year.

Managing director of Fliway Holdings, Duncan Hawkesby

Managing director of Fliway Holdings, Duncan Hawkesby Photo: RNZ / Nona Pelletier

The company plans to raise between $27.3 million and $44.5 million from institutional investors in an initial public offering, or IPO, and list on the stock exchange's main board on 9 April.

The owners will retain between 30 and 50 percent of the company.

Fliway's managing director Duncan Hawkesby said the balance of the money, up to $10.5 million, would also be used to reduce debt and invest further in the business.

"We've got aspirations to be a more significant player in the sector we operate than we are today," he said.

Looking ahead, Fliway expected a net profit of $4.4 million in the year to December and revenue of $85 million.

Fliway Holdings has over 400 staff, 17 New Zealand locations, 170 vehicles and offers international freight, warehousing and domestic delivery services.

The near 40-year-old business has an international and domestic division, and a 50-50 partnership with UPS, as the operator of the global courier's New Zealand business.