Vocus says it intends to float its New Zealand operation on the NZX. The initial public offering could be in the first half of next year, although timing depends on market conditions.
In 2018 Vocus attempted a trade sale of the New Zealand business but that fell through after the company received inadequate offers.
The parent company announced its intention to float the NZ business in a statement to the Australian Securities Exchange. The statement says the board considered that the New Zealand business had significant opportunities that would be “better realised if Vocus New Zealand is an independent entity”.
In its statement Vocus described the New Zealand business as an established challenger in a strong market position that is led by an experienced and highly capable management team.
Vocus is New Zealand's third-largest broadband operator behind Spark and Vodafone. It is an integrated telecommunications provider with its own fibre infrastructure. It also has a power retail business that is wrapped into broadband sales.
It includes the Orcon, Slingshot and Flip brands. Recently it acquired Stuff Fibre.
In its results for the 2020 financial year Vocus New Zealand had revenues a shade under $400 million. EBITDA came in at $65 million. Vocus has 220,000 residential broadband customers and 20,000 business customers.