NZRLC listing now on Monday

AUCKLAND: New Zealand Rural Land Company Ltd (NZRLC) said it had raised the minimum $75 million required for its initial public offering but that the listing date had been extended from tomorrow to Monday.

The company said allotment of the shares under the IPO has been deferred by a day to help settlement with institutional investors.

A $750,000 investment from Allied Farmers got the IPO get over the line to meet the $75 million minimum target.

NZRLC had sought $75 million to $150 million from investors to invest in rural land, mostly dairy.

Allied will acquire a 50% interest in NZ Rural Land Management Partnership, the manager of the investment company.

In a statement to the NZX, Allied said it had agreed to invest the $750,000 ‘‘to assist in the success of the IPO capital raise’’.

Separately, Allied said its rights offer, at 50c a share, closes on Friday. Allied shares last traded at 58c.

Allied chairman Richard Perry said Allied looked forward to NZRLC commencing its farm acquisitions.

‘‘We believe this is an excellent outcome for Allied Farmers, as it generates additional cash return for a modest capital outlay, and enables us to diversify in a manner consistent with our strategy and values,’’ he said.

The $750,000 investment, made from existing group reserves, was in addition to the $375,000 in loans that convert to shares in NZRLC, taking Allied Farmers’ investment in NZRLC to $1.125 million, based on a subscription price of $1.25 per share.

Postlisting, the NZRLC plans to buy rural land across the New Zealand agricultural sector, with an initial focus on highly indebted dairy properties. NZRLC said it would be an agricultural sector landlord only, leasing rural land to experienced tenants under longterm leases. — The New Zealand Herald