The nine new warrants cover Auckland International Airport Limited, Fletcher Building Limited, Fisher & Paykel Healthcare Corporation Limited, Freightways Limited, Hallenstein Glassons Holdings Limited, Telecom Corporation of NZ Limited, Tower Limited, PGG Wrightson Limited, and The Warehouse Group Limited. The prospectus for the warrants was registered on 31 March 2006.
They bring the total of warrants that are listed on the New Zealand market to 36, and are expected to add to the growing popularity of this investment tool.
“Both ABN Amro and UBS have been supportive of warrants trading from day one, and their enthusiasm for this investment tool, which has long been popular in overseas markets but was unavailable in New Zealand until last year, is being shared by growing numbers of investors,” said NZX Markets Development Manager Geoff Brown.
T hird party warrants first listed in April 2005 and since their inception, trading has grown considerably. In March there were 605 trades, an 18% increase on February and the second highest month ever.
Warrants are primarily used by investors as a means of leveraging their portfolio. Warrants enable investors to essentially ‘lay-by' their shares by putting down an initial, partial payment, receiving entitlements (e.g. dividends) throughout the lifecycle of the warrant, and paying a final instalment on the maturity date.
“The range of companies covered in this new series will offer further opportunities for investors,” said Mr Brown.
The new warrants will trade under the following codes: AIAIZB, FBUIZB, FPHIZB, FREIZB, HLGIZB, PGWIZB, TELIZB, TWRIZB and WHSIZB. Requests for Investment Statements can be made to any accredited NZX Firm.
ABN Amro and NZX will run a seminar series about the new warrants in Dunedin, Christchurch, Wellington and Auckland. Enquiries on exact dates and times can be made to info@nzx.com.
For more information on warrants please go to www.nzx.com/education/warrants
