Hirepool's majority owner has abandoned plans to sell shares in a $NZ262 million ($A243.91 million) initial public offering after concern from institutional investors that on-market support for the stock wouldn't be strong enough.
Australian private equity firm Next Capital owns 64 per cent of the of the unprofitable equipment rental company and fellow shareholders Macquarie Group holds 21 per cent.
An indicative price of between $NZ1.10 and $NZ1.50 apiece was put on the shares.
Some institutions are understood to have struggled to put even a NZ90 cent valuation on the stock.
There had been good demand from retail investors but institutional investors weren't confident there would be enough support for the stock after it listed, especially with Next remaining a relatively large shareholder.
Existing shareholders are happy to remain owners of Hirepool, given the outlook for the economy and the business.
Hirepool is projecting profits from 2015, after years of losses, having squeezed out costs since buying major rival Hirequip out of receivership in 2013 and using its initial public offering to pay down debt, according to its prospectus.
Share
