It's unclear whether the Carter Holt float, which could value the firm at up to $1 billion, will go ahead.
It's unclear whether the Carter Holt float, which could value the firm at up to $1 billion, will go ahead.
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Carter Holt on ice, and axe for Greenstone IPO.
It hasn't been a great week for investment bankers on both sides of the Tasman.
We've seen Auckland-based building supplies firm Carter Holt Harvey put its sharemarket listing plans on ice, while Australian insurance distributor Greenstone pulled its A$900 million IPO amid a downturn in stockmarket conditions and poor feedbackfrom fund managers.
There's growing speculation that numerous Aussie floats could now be placed on hold for months and New Zealand's IPO pipeline has gone very quiet indeed.
Harbour Asset Management analyst Shane Solly said the aborted Greenstone deal showed the market was working.
"Our job as investors is to make sure businesses are appropriately valued and have the right structures," Solly said.
Another market source said there had been a significant decline in the quality of IPOs being put forward this year.
There were 12 New Zealand IPOs in 2014, but only one tiny deal - freight firm Fliway Group, which raised $25 million - has taken place this year.
It's unclear whether the Carter Holt float, which could value the firm at up to $1 billion, will go ahead.
It was previously expected to take place next month.
The company is blaming forecasting challenges in the Australian arm of the business for the indefinite delay, announced on Tuesday.
Australian media are speculating that an unconfirmed bid by ASX-listed conglomerate Wesfarmers for Carter Holt's 50-store Carters building supplies chain caused the delay.
Kiwi financial risk insurer CBL Insurance is understood to be forging ahead with plans to raise up to $140 million through a dual NZX/ASX listing next month.
Rather than IPOs, equity market action may increasingly come in the form of block trades, capital raisings by existing issuers and mergers and acquisitions.
Australia's Origin Energy is rumoured to be preparing to offload part or all of its 53 per cent stake in New Zealand's Contact Energy.
Major block trades of stakes in Refining NZ and Trustpower have already taken place, while Z Energy is gearing up to acquire Chevron New Zealand, operator of rival service station brand Caltex, for $785 million.
Meanwhile, Fletcher Building has reportedly engaged Credit Suisse and First NZ Capital to sell its Sydney-based Rocla Quarries division for A$200 million ($221 million).
That business is expected to be snapped up by a rival.
Still waiting
The Financial Markets Authority says it has reached the final stages of its investigation into alleged market manipulation at Milford Asset Management and is "engaging with the parties based on our findings".
"We hope to be in a position to make a statement in the near future," said spokesman Andrew Park.
Two months have now passed since the FMA said in early April that it expected to wrap up the investigation in "a few weeks".
Auckland-based Milford, which has more than $3 billion under management, confirmed in February that an employee was being investigated over certain trades.
The investigation is understood to have begun around the middle of last year.
A market source, who did not want to be named, said the investigation had been hanging over Milford and the wider industry and it would be good to see it brought to a conclusion.
Should the FMA find anything untoward, the source said he hoped the regulator wouldn't reach a settlement with the firm.
"Settlements really undermine the regulatory process."
Milking it
China's mega stock rally is working out quite nicely for Fonterra.
Shares in Chinese infant formula maker Beingmate Baby & Child have surged by almost 50 per cent since Fonterra spent 3.5 billion yuan purchasing an 18.8 per cent stake in the firm, at 18 yuan per share, in March.
The shares were trading at just below 27 yuan at midday yesterday, giving Fonterra a 1.6 billion yuan ($373.3 million) paper gain on its investment. But the company won't be cashing in those gains soon.
The shareholding is part of a tie-up with Beingmate that provides a potentially lucrative distribution agreement for the co-op's Anmum baby formula brand in China.
Monetary easing and a downturn in the Chinese property market has been pushing investors towards shares, fuelling an equity rally.
The Shenzhen market, which Beingmate is listed on, has gained 186 per cent over the past year.
Meanwhile, units in the Fonterra Shareholders' Fund have fallen 19 per cent over the last 12 months to close at $4.69 last night.
Hisco poised for top job
David Hisco, chief executive and managing director of ANZ New Zealand. Photo / Richard Robinson
ANZ New Zealand chief executive David Hisco has stoked speculation he is moving to succeed boss Mike Smith after he played host to Australian analysts and investors in Auckland last week.
The Australian Financial Review quoted unnamed analysts as saying the briefing suggested he was keen to remind the market of his potential for stepping up to the top job.
Smith has indicated he intends to leave the role during the second half of next year. Hisco, originally from Adelaide, is a more than 30-year veteran of the bank and became the boss of its New Zealand arm in 2010.
ANZ chief financial officer Shayne Elliot is also viewed as a potential successor to Smith.
