NZ Rural Land Company pushes out NZX listing day to Monday

NZ Rural Land Co is expected to list on the sharemarket on Monday. Photo / File

New Zealand Rural Land Company Ltd (NZRLC) said it had raised the minimum $75 million required for its initial public offering but that the listing date had been extended to Monday from Friday.

The company said allotment of the shares under the IPO has been deferred by a day to facilitate settlement with institutional investors.

A $750,000 investment from Allied Farmers got the IPO over the line to meet the $75m minimum target.

NZRLC had sought $75m to $150m from investors to invest in rural land - mostly dairy.

Allied will acquire a 50 per cent interest in NZ Rural Land Management Partnership - the manager of the investment company.

In a statement to the NZX, Allied said it had agreed to invest the $750,000 "to assist in the success of the IPO capital raise".

Separately, Allied said its rights offer, at 50 cents a share, closes on Friday. Allied shares last traded at 58c.

Allied chairman Richard Perry said Allied looked forward to NZRLC commencing its farm acquisitions.

"We believe this is an excellent outcome for Allied Farmers, as it generates additional cash return for a modest capital outlay, and enables us to diversify in a manner consistent with our strategy and values," he said.

The $750,000 investment, made from existing group reserves, was in addition to the $375,000 in loans that convert to shares in NZRLC, taking Allied Farmers' investment in NZRLC to $1.125m, based on a subscription price of $1.25 per share.

Post-listing, the NZRLC plans to buy rural land across the New Zealand agricultural sector, with an initial focus on highly indebted dairy properties.

NZRLC, which is chaired by Rob Campbell, said it would be an agricultural sector landlord only, leasing rural land to experienced tenants under long-term leases.

The company plans to buy rural land using a combination of the equity funds and debt not exceeding 30 per cent of its total assets.

The management company will be 50 per cent owned by Allied Farmers and 27.5 per cent by Elevation Capital.

Upon successful completion of the IPO, Chris Swasbrook, founder and managing director of Elevation Capital Management, will join the board of Allied Farmers.