Property developer and investor Calan Healthcare Properties will graduate to the stock exchange's main board in an index shuffle caused by recent corporate activity.
Calan will rank at around 48th on the exchange's index of top 50 stocks from July 14, following the departure of Ports of Auckland.
The port
operator returned to public ownership yesterday when Auckland Regional Holdings pipped the 90 per cent acceptance mark required for compulsory takeover of the company.
"Calan Healthcare Properties Trust is to be promoted to the NZX 50 Index, NZX 50 Portfolio Index and NZX MidCap Index to fill the space created by the takeover of Ports of Auckland Limited by Auckland Regional Holdings," the exchange said.
The move is good news for Calan, which invests in healthcare and medical-related properties. A top 50 listing gives a stock more exposure as investment funds with a mandate to follow the index increase their weighting.
The company is also more likely to be monitored by brokers, which raises investor confidence.
Calan was in the top 50 when the index was first introduced in 2003, with institutional investors making up about 15 per cent of the share register, but was bumped by bigger players. Its current institutional weighting is about 5 per cent.
With a market capitalisation of $146 million, Calan is a minnow by comparison to the market's biggest stock, Telecom, which is worth almost $12 billion.
Shares in Calan traded up 2c at $1.06 on the news.
- NZPA
