Looking Back On The Napier Port IPO
Its only been matter of weeks since our IPO sale of 45% of the shares in Napier Port. It was momentous occasion for HB that couldn’t have happened without a huge amount of hard work from a lot of people.
This process has taken two years and I undertand that whilst not everyone supported the sale of these shares, I ask you to consider the following.
- The HBRC has retained majority community ownership and control of Napier Port for the benefit of all Hawke’s Bay residents.
- We have protected and grown our balance sheet to enable us to focus on our core enviromental responsibilities and prepare for the envitabilities of climate change.
- The councils 55% share in the Port is now worth more than our 100% share was three weeks ago.
- Plus the HBRC has an extra $108m of cash from the sale that we have invested on behalf of the people of HB.
- Plus we were able to pay off the Ports debt and allow them to refinance to build the new wharf which we desperately need to cope with our growing economy.
- We protected ratepayers (many of whom are still struggling), from the costs of Port development.
- Locals who could afford the investment were prioritised in the IPO and this has been a great success, with almost 90 per cent of locals getting all of the shares they requested. This made up 20% of the shares now owned by 7500 local HB residents.
This has been an amazing achievement for this council who acted with the highest integrity and provided the vision to enable this all to happen.
They confronted the issues and did what they thought was right depite the political risks
They have shown what is possible with a clear vision, and leadership, plenty of hard work and a commitment to taking our community on a journey with us. Everyone of them contributed to the final result.
The council was supported by a group of financial and legal advisors and our own staff both within council and at the Port who worked on the project.
They all did a really great job in translating our councils vision into a market reality.
It wasn’t an easy journey for many in our community especially the Port staff and their union who were initially concerned about job security but I am extremly pleased that 97% of them eventually bought shares in this business which depends so much on them. This has got to be some kind of new world record.
Without their competency and work ethic, this would never be the profitable Port business that it is today.
We set the initial share price at the highest level recommended and the market still had a bit more room to move adding even more value to the shares.
This has been a little bonus for those of you who bought shares and you are to be applauded for your confidence in this business and our region
Its been a long journey but we got there and we can all celebrate an amazing result for Hawkes Bay
HB Regional Council