Pastoral Dairy Investments, a specialist investment fund led by New Zealand's dairy industry and investment figures, launched an initial public offer yesterday aimed at raising a minimum of $25 million for the purchase of South Island dairy farms.
The fund would start as a "cash box", but would seek tobe fully listed on the NZX within two years, said ABN Amro Craigs executive chairman Neil Craig.
The company intends to use the regular monthly milk payments from Fonterra, or other dairy companies, to pay quarterly dividends.
PDI will target larger farms in the 600- to 1000-cow range. The average herd size is around 380.
Separately, PDI will seek $50 million in what it calls co-investment from other parties who will be able to gain exposure to farm ownership at individual level.
PDI is to be chaired by Malcolm Bailey, who is chairman of the Dairy Companies Association and a director of Fonterra.
Bailey is to be joined by John McDonald, chairman of Pohutukawa Private Equity and a Solid Energy and Horizon Energy Distribution Director and Alister Body, a DairyNZ director and mid-Canterbury dairy farmer.
PDI is offering 25 million shares plus oversubscriptions, at an issue price of $1 a share, partly paid to 30c a share with a minimum commitment of $20,000.
