Investors taking part in DNZ Property Fund's share market listing will pay 97c a share after a book build process set the strike price at the upper end of an indicative range set by the board.DNZ, which owns a mix of office, industrial and retail property
Investors taking part in DNZ Property Fund’s share market listing will pay 97c a share after a book build process set the strike price at the upper end of an indicative range set by the board.
DNZ, which owns a mix of office, industrial and retail property valued at $700 million, is seeking to raise a total $45 million from the float after deciding to accept an additional $10 million.
The company needs $35 million to buy out the management contract of its chief executive Paul Duffy and ex-chairman Alastair Hassel. The proceeds of the capital raising will be used to reduce some of DNZ’s $322 million of bank debt.
All shareholders who applied for their entitlement under the pro-rata and excess subscriptions offers received their full entitlement under the offer.
Some $8.25 million worth of shares were allocated under those offers.
DNZ Chairman Tim Storey said the company had witnessed strong interest in the capital raising from existing shareholders and from institutions.
The indicative range for bids was 80c to $1.05 a share.
“The board believes the price of 97c per share has achieved an optimal balance for existing shareholders and new investors,” Mr Storey said.
“The price is a reflection of the forecast dividend yield, underlying quality of the DNZ portfolio and the benefits of an internal management structure – a structure which currently is unique among the listed New Zealand property entities.”
Shares offered under the offer will be allotted on August 13 and listed on the NZX on August 16.
DNZ yesterday warned shareholders about an unsolicited offer to buy their shares at 60c.
The company tried raising $140 million and listing on NZX last year but that offer was withdrawn amid controversy over the management contract buyout.
