Pyne Gould listing brings in old money

By PAUL PANCKHURST

A solid wedge of old Canterbury money hits the stock exchange on Tuesday with the listing of Pyne Gould Corporation, a company with a market capitalisation of about $250 million.

Pyne Gould lists with a share register that is theoretically wide open, since no one owns as much as 5 per cent.

However, close to 60 per cent of the company is reported to be held by "a couple of hundred" descendants of the founders of Pyne Gould Guinness, the rural services company with origins stretching back to 1851.

The family names featuring large on the register include Gould, Boyle, Francis, Pyne and Warren.

The 17-year-old Pyne Gould Corporation's biggest asset is Auckland finance company Marac, which finances motor vehicles, plant, equipment and property.

Marac contributes 63 per cent of the company's earnings.

The second main asset is a majority stake in the rural services company Pyne Gould Guinness, the mainly South Island business which is listed on the NZX with a market capitalisation of $124 million.

The third and minor asset is Perpetual Trust, which provides corporate trust and personal client financial services.

Pyne Gould Corporation is jumping across from the unlisted market, where it last traded at $5.15.

"We have operated to all intents and purposes like a listed company for 10 years or more," chairman Sam Maling said yesterday.

The company said it would sit at No 27 in the NZSX50, but its shares are, so far, traded too infrequently to meet the index's liquidity requirement.

Besides Maling and managing director Richard Elworthy, the company's board is George Gould, Bruce Irvine, Bryan Mogridge, Stephen Montgomery and Tim Saunders.

The company's listing profile forecasts net profit after tax for the year to June 30 of $21 million - up 31 per cent on the previous year. The forecast dividend is 25c per share, up from last year's 20c.

The possibility of raising capital for acquisitions is cited by the company as one of the motives for listing.

Elworthy said the company "obviously" wanted to grow and the growth would probably come through Marac. The company also says extra liquidity and more transparent price-setting are reasons for listing.

Pyne Gould Corporation has 48.9 million shares on issue and more than 1700 shareholders.

The organising broker for the "compliance listing" - meaning the company is not raising capital by selling shares - is Forsyth Barr.