"We are very appreciative of the level of interest in our IPO and see it as a strong indication of the capacity for companies to raise low cost capital (NZX raised capital at a total cost of 3.3%), as well as investors' willingness to support New Zealand based businesses," said Mark Weldon, NZX CEO.
In all there were 6,065,504 new NZX shares issued to 3,706 shareholders, including 728 first time shareholders in the New Zealand market. The total number of NZX shares now on issue is 12,685,504. The NZX Firm allocation of $5million was 5.1 times oversubscribed. The Institutional pool of $1 million was 4.2 times oversubscribed. The public pool of $3.1million was 3.9 times oversubscribed and a balloting process was used to determine allotment of these new shares.
"The Board made the decision to allot the minimum amount of shares to the public pool applicants in order to get as wide a shareholder base as possible," said Weldon. "We also wanted to give priority to first time subscribers to encourage broad individual participation in New Zealand's capital markets."
Due to the size of the oversubscription, the Board decided to scale by ballot, giving priority to first time shareholders. Successful applicants will receive 416 NZX shares.
Letters of allocation, along with share statements, will be posted to all new shareholders on Thursday 10 July. Letters will also be posted to all those who were unsuccessful in their application for NZX shares and refund cheques will follow within 5 business days.
New shares commence trading tomorrow, Thursday 10 July, under the ticker symbol NZX. Shareholders should refrain from trading their new shares until they have either received a share statement from the Registry or have been advised by their broker that they have been successful in their application.
