- The infrastructure sector is vital for a nation’s economic development.
- Infratil devoted 120-130 million GBP of growth capital to Kao Data in October.
- Arvida Group completed its shortfall bookbuild component of its Rights Offer.
The infrastructure sector of a country includes water, transport, roads, bridges, power and urban infrastructure development. These systems are vital for the economic development of a nation and require high investment.
The NZ government plans to spend $57.3 billion on infrastructure from 2021 to 2025.
Let’s skim through the most prominent companies listed on the NZX in this space.
Image source: © 2021 Kalkine Media, Data source- Refinitiv
Fletcher Building is involved in the manufacturing and distribution of building products in NZ and Australia. FBU witnessed strong results in FY21, registering a revenue of $8.1 billion and an EBIT of $669 million for the period.
Fletcher has a positive market outlook and expects its 2H22 margin to show good progress towards its target of c.10% EBIT margin in FY23.
On 12 November, at the time of writing, FBU was trading at $7.18, up 0.56%.
Infratil is a Wellington-based investor in energy and infrastructure businesses. The Group committed 120-130 million GBP of capital to London-based data centre Kao Data in October.
Infratil will get a 40% interest alongside its current owners and intends to build a 500 million GBP multi-site data centre platform in the medium term.
On 12 November, at the time of writing, IFT was trading at $8.22, up 0.74%.
Summerset is one of the leading operators and developers of retirement villages in NZ. The Group posted solid growth in its resale and new sales figures in Q3 2021 with nearly 744 sales for the 9 months ended September 2021.
The Group pre-sold all its independent living units that were to be delivered over the next six months at its new Mt Denby retirement village in Whangarei.
On 12 November, at the time of writing, SUM was trading at $13.9, up 0.14%.
Arvida Group Limited (NZX:ARV)
Retirement village and aged care operator in NZ, Arvida Group, completed its shortfall book build component of its $175 million 100% underwritten 1 for 6.57 pro rata Rights offer.
An amount of $330 million was raised under the Rights offer and the Placement was done to raise capital to fund Arena Living’s six retirement villages.
The settlement and allotment of new shares that were taken under the shortfall bookbuild are likely to happen on 15 November 2021.
On 12 November, at the time of writing, ARV was trading at $1.99, up 1.02%.
Infrastructure development is significant for an economy’s progress.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)