Promina Listing Leads Way For Trans-Tasman Cos.
9 June 2003
Promina Listing Leads The Way For Trans-Tasman Companies
The Promina float, the first ever dual primary listing by an Australian company on the NZX may have set a precedent for other trans-Tasman companies according to Simpson Grierson corporate partner Richard Nelson.
“In contrast to the raft of New Zealand companies that have sought a dual listing on the ASX such as Telecom, Fletcher Building and Sky City, Promina has shown that it is possible to gain a worthwhile dual primary listing on the NZX" he says.
Nelson also points out that Australian companies wanting a better index weighting in the NZSX-50 should seriously consider such a listing if they are driving a material proportion of revenue out of New Zealand, similar to Promina. "It’s worthwhile because a significant index weighting potentially attracts greater interest and research coverage from the financial community and a higher proportion of institutional funds flow" he says.
The dual listing however would have been more difficult to achieve without the support of the NZ Stock Exchange. "The NZX's approach was very constructive" says Nelson.
The listing is the biggest in the world to date this year raising a substantial NZD $2.1 billion – one third of the total value of all other IPOs worldwide this year. Simpson Grierson were appointed as the New Zealand solicitors to this landmark transaction.
- The offer was managed by the Joint Global Co-ordinators and Joint Bookrunners, Macquarie Bank and Goldman Sachs.
- The main benefit of a dual primary listing for an Australian company with New Zealand revenues is that it may be able to get an enhanced index weighting in the NZSX-50 index. Index weights for dual primary listed issuers in the NZSX-50 are based on total free-float shares multiplied by the proportion of revenue earned in New Zealand, whereas index weights for overseas or "secondary" listings are based solely on the total number of free-float shares on the New Zealand register.