It was an auspicious opening for Napier Port Holdings [NZX:NPH] today. Its stock value rocketed during the first session of trading by an astounding 15.77%.
Napier Port is the latest company to go public, floating 90 million shares, which represented 45% of its equity.
Napier Port is a regional port owned by Hawke’s Bay Regional Council. At the time of writing, the company has a market capitalisation of $601 million, and the share price sits at $3.010.
Why has [NZX:NPH] share price increased today?
Feverish anticipation has been building in the lead-up to the IPO. This is because of the relative scarcity of listings on the New Zealand Stock Exchange.
Napier Port is just the second company to list this year, alongside cannabis firm Cannasouth Limited [NZX:CBD]
This drought has stirred up real hunger among investors, which has given rise to a bullish stampede today.
Where could Napier Port go from here?
The outlook for [NZX:NPH] is positive for the immediate future.
Napier Port has announced plans to extend its presence by building another wharf, which will serve to complement its existing infrastructure.
Increased access to capital will mean better servicing of debt, as well as opening up the possibility for even more expansion in the Hawke’s Bay region. The ability to accommodate larger cruise ships will be a boost for tourism here.
This positive sentiment will likely buoy share value in the short- to medium-term.
Contributor, Money Morning New Zealand