New Zealand Finance Holdings Share Offer
Monday September 27, 2004
Strong Response To New Zealand Finance Holdings Share Offer
A strong response to its public offering of shares reflects an understanding of the niche position of New Zealand Finance Holdings Limited (NZFH) in the financial services company sector and a confidence in its ability to grow its business, says the company's Managing Director John Callaghan.
Days before the close of its public offering of shares on Friday (1 October, 2004), NZFH expects the offer to be fully subscribed, and says it is pleased by the public response.
NZFH is offering 5.5 million new shares and 4.3 million existing shares to the public at 30 cents per share. The original three major shareholders are reducing their shareholdings to meet an NZX listing requirement. Prior to the issue of the shares, there were 63,500,001 shares on issue.
John Callaghan says interest in the offer has been "very high".
"We're very pleased with the level of interest and applications from throughout New Zealand. Traditionally, there has not been a lot of choice in this sector to invest in, and we are keen to attract as broad a shareholding base as possible through this offer.
"While some public subscriptions are still available, it certainly looks as though the offer will be strongly taken up by closure at the end of the week. It seems that our major concern has been to meet the minimum threshold requirement of 500 shareholders set by the NZX, rather than any concern about the overall success of the offer."
Mr Callaghan said the move by NZFH was part of an expansion and diversification plan aimed at building on the company's steady growth over the past five years.
New Zealand Finance Holdings is the holding company for wholly-owned subsidiaries New Zealand Finance Limited (NZF), and New Zealand Mortgage Finance Limited (NZMF). The company is based in Auckland and has agents throughout New Zealand.
A prospectus for the offer has been registered, and the offer opened on 8 September, 2004. The offer closes on Friday (1 October, 2004) and trading on the NZX is expected to begin on 6 October, 2004.