For fresh produce marketing in Australia and New Zealand
Gabrielle Easter



Costa to trade at A$2.25 per share

Ahead of its first day of trading on 24 July, leading Australia fresh produce company Costa has listed its share price at the lower end of its targeted range

Costa to trade at A$2.25 per share

Related Articles

Costa Group has announced its final share price ahead of its listing on the Australian stock exchange, at A$2.25 (US$1.66) per share. and is expected to raise A$541m to A$637.4m, according to ABC Rural.

On the lower end of the targeted range at A$2.20 to A$2.70, market volatility amid economic uncertainty in China and Greece has been cited for the low share pricing for the leading Australian fresh produce company.

Nevertheless, the float will likely be the second-largest IPO for the Australia stock market this year as it sells a 76 per cent stake. Joint owners Costa and US private equity firm Paine & Partners will retain a 10.5 per cent and 12.4 per cent stake respectively,

The major grower of mushrooms, berries, bananas and greenhouse tomatoes, with more than 75 per cent of its revenue coming from covered cropping, has been pitching itself to overseas investors as an industrial technical group rather than an agribusiness. Costa supplies 45 per cent of Australia’s blueberries under a joint venture with US Driscoll’s, with further operations in Morocco and China.

"This is a significant new phase for Costa and through our scale, national reach and product quality we are well positioned to capitalise on future growth opportunities, including further investment in produce categories that enable year round production and supply to Australian retailers and consumers," Chatfield said.

Costa is expected to be listed at 12pm on Friday 24 July.

comments powered by Disqus

Keep informed...