DNZ Property rises on NZX debut after $45M IPO

DNZ Property rises on NZX debut after IPO used to pay for management contract

August 16 (BusinessDesk) - DNZ Property Fund's shares debuted on the NZX at 99 cents, a premium to the 97 cent a share issue price in its $45 million capital raising.

The first trade also beat its last trade at 90 cents a share on the Unlisted exchange. Today, the shares subsequently traded at $1. By 10.25a.m., about 360,000 shares had changed hands.

“The institutions were scaled back a bit so there may be a bit of demand,” says Jeremy Simpson, an analyst at Forsyth Barr. “It will be interesting to see what a number of the little holders do.”

Of the new capital raise, $35 million was used to buy the management contract owned by chief executive Paul Duffy and Alastair Hassell which had given them a right of veto over the investors' wishes.

DNZ was formed from 32 property syndicates, mostly single asset and/or single-tenant funds, established between 1996 and 2001.

Now, DNZ owns a property portfolio worth about $671million and an agreement to manage Diversified NZ Property Fund whose portfolio is worth about $100 million.

(BusinessDesk)

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