DNZ listing beats Unlisted price at 97 cents

DNZ listing beats Unlisted price at 97 cents in $45 mln raising

By Paul McBeth

Aug. 11 (BusinessDesk) – DNZ Property Fund Ltd. will list at 97 cents on the NZX next Monday, beating its closing price on the Unlisted exchange.

The property investor that brought its management contract in-house raised $45 million through a pro-rata share issue and bookbuild, with new investors making up more than 80% of the new funds. The company had predicted a range of between 80 cents and $1.05 for its NZX listing, and last traded at 90 cents on Unlisted.

“The level of interest and the price shows that there are very real benefits to moving to a NZSX listing by attracting new investors and this also clearly benefits our existing shareholders,” chairman Tim Storey said.

The listing and capital raising was approved last month by about 98% of existing investors and $35 million of the new capital will be used to buy the management contract owned by chief executive Paul Duffy and Alastair Hassell.

The float will be the second on the NZX this year after candlemaker Ecoya Ltd.’s in May. DNZ aborted a listing last year after shareholder MMG Advisory rallied investors to block the bid, and forced a meeting that elected MMG’s David van Schaardenburg as a director. DNZ owns 55 properties worth some $671 million.

(BusinessDesk)

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