E-Malt.com News article: New Zealand: Moa Group brewery shares successfully debut on New Zealand Stock Exchange

Beer brewer Moa Group Ltd.'s shares debuted higher on the New Zealand Stock Exchange on November, 13 following strong demand from institutional and retail investors in its initial public offering, The Wall Street Journal reported.

Moa sold 16 million New Zealand dollars (US$13.1 million) worth of shares at NZ$1.25 per share at its initial public offering. The stock debuted at 2300 GMT at NZ$1.35 and was trading at NZ$1.34 per share at 2351 GMT. The company is currently valued at around NZ$40.7 million.

A NZ$1 million public pool closed oversubscribed by 124%.

"With the Moa listing set to proceed today, we hope these people can support Moa post listing by looking to buy on-market and enjoying the Moa range of beers," said Moa Chief Executive Geoff Ross.

Moa, which makes a range of craft beers and ciders, is the first locally-owned brewer listed on the exchange since Lion delisted in 2009 after being bought by Japan's Kirin Holdings. The value of New Zealand's craft beer industry has been thrown into the spotlight with the purchase of Dunedin-based Emerson's Brewery by Lion New Zealand for an undisclosed sum last week.

The eight-year-old company plans to use the capital raised to build a bigger brewery, increasing production fivefold, and expand its marketing budget.

Sales at the company, which already exports to the U.S. and Australia, grew by 88% in the financial year through March, according to the offer document. It expects sales to increase by 97% this year and to double again in 2014.

"The extended shelf-life achieved through the bottle-conditioning brewing process gives the Reserve and Estate ranges a competitive advantage over mass-produced beer as an internationally exported product," Moa said in its offer document. The company is currently operating at a loss.

14 November, 2012