By PHILIPPA STEVENSON
Nearly 7000 investors jumped at the first opportunity for non-dairy farmers to put money on the country's biggest company, Fonterra.
The dairy company's $200 million capital notes offer, which was fully subscribed within days of the November 5 issue, yesterday listed on the New Zealand Stock Exchange debt market.
Broker
Neil Craig, of ABN Amro Craigs, said the notes were extraordinarily popular.
"It's because it is Fonterra, which has extreme quality in terms of balance sheet and has a high credit rating," he said.
"It is also because the market is very conducive to fixed interest since September 11."
Investors in their thousands missed out on the offer but 6600 applicants from throughout the country were successful, resulting in an average holding, including institutions, of just under $30,000.
On yesterday's first day of trading a very slight volume changed hands for 2 to 3 per cent above the $1 issue price, Mr Craig said.
The NZSE said Fonterra's listing had increased the total value of the debt market to $2.9 billion.
