The Business Herald’s markets and banking reporter.

Oceania rallies after listing on NXT

Shares in Oceania Natural rallied after the supplement maker became the third company to list on NZX's new NXT market. Photo / Supplied
Shares in Oceania Natural rallied after the supplement maker became the third company to list on NZX's new NXT market. Photo / Supplied

Shares in Oceania Natural rallied after the supplement maker became the third company to list on NZX's new NXT market.

The newly listed stock closed at $1.09 last night, a 70.3 per cent premium to the 64c issue price.

It was a compliance listing, meaning no new capital was raised.

Oceania is controlled by its chief executive and chairman Walker Zhong, who owns a 62 per cent stake in the business.

The company manufactures and markets food and supplement products made with New Zealand manuka honey and noni fruit grown in the Cook Islands, marketed under its Rich Garden branding.

China is the firm's main export market.

Zhong said Oceania wanted to attract investment from China and Chinese investors considered listed firms more trustworthy and transparent.

"It's very hard for them to get information from the private company," he said.

Zhong said Oceania would raise capital through issuing new shares at some point, although no timeline had been set.

"If we need it, we will raise capital."

He said the opportunity in China for Oceania was huge, with the natural health products market in that country worth $100 billion.

Oceania expects total revenue of $3.4 million in the year to March 31 this year, rising to $5.4 million in the following financial year, according to the firm's key operating milestones included in its listing document.

- NZ Herald

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