By PAUL PANCKHURST
The New Zealand Exchange yesterday priced shares for its initial public offering at $3.60 - 10 per cent cheaper than where the stock closed in the day's trading.
The price was higher than the indicative range of $2.50 to $3.35 in the company's prospectus, but in line with
brokers' expectations.
Since listing on June 4, the exchange's shares have closed as high as $4.20 and as low as $3.90.
The exchange said the price took into account factors including:
Trading so far.
The "overall demand profile".
Pricing indications from institutions and from the allocation of stock to broking firms.
Valuation advice.
Chief executive Mark Weldon said it was inappropriate to comment on price because he was also head of a market regulator.
The exchange is raising $10 million from the IPO shares, on top of $5 million to come from a one-for-two rights issue.
The offer closes on July 4.
The IPO cash will come from: Firm allocations to clients of NZX broking firms, $5 million; public pool, $3.1 million; institutions, $1 million; and NZX directors and staff, $900,000.
The IPO pricing decided the number of shares the exchange would have on issue.
At $3.60 a share, the number of shares needed to raise $10 million is 2,777,778.
Add that figure to the 6.62 million on issue and the 3.31 million to be created by the rights issue, and NZX ends up with 12.7 million shares.
At yesterday's closing price, that would translate into market capitalisation of $50 million.
After pulling in its $15 million, the exchange will have more than $22 million to throw around.
