Zespri Group is floating a further $16 million of shares to orchardists, partly to boost its marketing of gold kiwifruit.
The float is largely aimed at expanding the New Zealand supply of Zespri Gold, and marketing the cultivar to underpin its year-round sales.
Zespri already has Italian orchardists growing the "patented" golden
variety for sale in the Northern Hemisphere during the New Zealand off-season.
The original Hayward green kiwifruit, bred here from Chinese plants, is grown worldwide, but the industry has retained exclusive marketing rights to the golden variety.
Zespri particularly wants to manage the volume of Zespri Gold in affluent markets, because with its exclusive rights, the company can largely dictate sale prices.
"Success with this fruit is expected to be a material driver of the company's future income growth," Zespri said.
With year-round supply, sales and distribution, the company would be in a better position to offer a range of fruit in selected markets .
Zespri labels would go on to overseas fruit that met the company's standards. Italian-grown green kiwifruit is being packed under Zespri's supervision for North American markets during the New Zealand "off-season" between December and April.
Gold kiwifruit is also being grown in Italy, set for sales next year.
The share offer - the first since the original issue to growers last April - has an issue price of $1.20 a share.
Remaining shares are to be split between the industry's shareholders.
Zespri forecasts a net profit before tax of $39 million and an after-tax net profit of $176,000 for the year ending March 31. That is after payments to suppliers of $432.2 million and deductions of $5 million of non-recurring costs relating to pulling marketing of the tomua variety.
Zespri said projections showed a steady increase in sales of the green kiwifruit and organic kiwifruit, while sales of the gold kiwifruit were expected to soar over the next five years.
The share offer closes on March 14.
- NZPA
