Moa up on NZX debut

LISTING: Geoff Ross speaks to guests as Moa shares go live on the NZX

Update 1pm

Moa Group’s midday listing on the NZX saw its shares start trading at $1.35 – 10c above the offering price of $1.25.

However, they soon dropped back to $1.30 where they have remained for most of the afternoon.

The craft brewer has raised $16 million in first IPO of the year.

Moa shares are trading on the NZX main board under the ticker code MOA

As share trading went live, chief executive Geoff Ross and his fellow directors watched on, sipping Moa’s breakfast brew, at a listing function at Auckland’s  Britomart precinct.

“Every self-respecting company needs a brewery on its exchange,” said Mr Ross.

“Today is important because New Zealand needs to create more growth companies.”

NZX chief executive Tim Bennett said it was a great day for the New Zealand market.

“Let’s hope there’s more of this to come,” Mr Bennett said.

Moa Group directors are Geoff Ross, Allan Scott, Craig Styris, Grant Baker, Kim Ellis, and Alistair Ryan.


10am/ Moa beer to hit NZX at midday 

New Zealand will once again have a listed brewer when shares in Moa Group start trading on the NZX today.

Allocations for the Moa IPO have been completed in advance of quotation, which is expected to occur on the NZX main board at midday under the code MOA.

The craft beer brewer has raised $16 million by offering shares at $1.25 each. Of that, $15 million was raised from institutional investors and an additional $1 million was offered through a public pool.

The minimum application was for $1500 worth of shares.

Because applications to the $1 million public pool were significantly oversubscribed by 124% – more than twice the sum sought – allocations will be scaled back considerably, Moa says.

Investors who did not pre-register were last week warned they were unlikely to get any shares, but would get a refund once the offer is settled.

Moa chief executive Geoff Ross, founder of 42 Below vodka, says he hopes investors who missed out can invest in Moa post-listing by looking to buy on-market.

Applicants can visit the Link Market Services Investor Centre at www.linkmarketservices.co.nz from 9am to confirm their allocation before trading of the shares begins.

The local stock exchange has not had a locally-listed brewer since Lion delisted in 2009 when it was bought by Japanese brewer Kirin.

Moa expects to have a market capitalisation of about $38 million following the IPO.

Its investment statement reveals the brewer made a net loss of  $2.85 million in the year to March 2012 and losses are forecast to continue until 2014.

Dividends will not be paid for the period covered by the prospectus.

"Moa is currently a loss-making entity; it is not anticipated to make a net profit in the near term as the business invests in growth,"  the statement says.

It needs the money to increase its brewing capacity by building a larger, $6.1 million brewery facility at its Marlborough base and to cover the $1.6 million cost of the float.

Following the IPO, the existing shareholders will own 61.58 % of 30.4 million total shares.

Moa's pre-float shareholders include the Business Bakery, co-owned by Mr Ross, with a 42% stake,  Pioneer Capital and Allan Scott Wines.

The beer brewer was founded in 2003 by Josh Scott, the son of Marlborough winemaker Allan Scott.

Craigs Investment Partners and Forsyth Barr acted as joint lead managers for the Moa offer.

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11 Comments & Questions

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Fools and money

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Or is it fools and beer?

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Well, I pre-registered right at the get-go and never heard a squeak back from them.

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Same experience. Put the money into Fonterra instead.

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MOA is being set up to be another 42-Below venture.

The company will never actually make money in itself - but will hype-brand itself in an attempt to achieve an eventual sale to a bigger brewery that pays over-the-top for a publicity brand in good times.

In terms of beer quality there are hundreds of comparable craft brewers out there now - MOA is mid-range and high priced - but will try to distinguish itself through a deliberate high profile.

It worked for 42-Below - sold off to Bacardi for 77c offering 27c profit per share for IPO investors in about 4 years ... although the bulk of the profits when to the main owners who had tens of millions of shares bestowed on them for free.

The question is - does the same tactic work twice? And does it work after GFC? And does it work for a product that is not unique or the best?

I expect a small profit for stags - and then a gradual decline in the share price as the hype wears off and people realise that there is no possible dividend payment until a sudden buy-out.

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MOA's a good product, not great, but good enough. The marketing is very very good, and kiwis are suckers. This thing's going to work, but really only for Ross and co. They've got the readies personally to build the brewery and build the brand, so why have they floated... certainly not to raise needed capital... they've got all the cash they NEED to do it... they just want mom n pop investors to bankroll their next 50mill. That's Wall St !

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Well done Geoff et al. 15 - 0 to you. But first game of three round set. Now Now beat the forecasts and show the naysayers to be wrong

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We do need more growth companies and good on the lads (and xero) for trying to achieve this. But please try to list and value companies at sensible pre-money valuations, and avoid the temptation of self righteous (and disingenuous) hype. Modern day entrepreneurs, please don't equate your companies with the residential market.

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YOU'RE ALL HATERS. Grow up.

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Mr Tim Bennett's statement that it was a great day for the NZX and hoped that there would be more to come glaringly show the pathetic state that the NZX has sunk into.

A miserable $16m IPO hyped up like the Chases and Equiticorps and Jedicorps of the past (based on the track record of the promotors to pass the parcel) is cause for celebration?

What next? Maybe a bread shop from the Baker boys?

Looking forward to the wild look of ecstasy on Mr Bennett's face when Fonterra Clayton's shares list soon. A real sight to behold when you consider how excited Mr Bennett has got just with the $16m raised for Moa!

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Vintage NZ mentality - someone else doing something good, giving it a crack, while not necessarily massive, and it's all negative.
Where is Equiticorp now? Exactly, no one reading this is even old enough to know what you're talking about; the world move on. Enjoy your Tui.

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