Units in the new Fonterra unit fund debuted on the NZX at
$6.61, up $1.61, or 21%, on their listing price of $5.50.
Interest in the units, as the shares have been named by the
dairy giant, was expected after the huge scaling back on
applications for the units in the dairy giant.
It is the first time the investment public have had a chance
to buy into the cooperative.
Fonterra priced the units at the top end of the range with
42% of the units sold off shore.
Shareholders will have dividend rights but will not be
allowed to vote on Fonterra issues.
Fonterra chairman Sir Henry van der Heyden said this morning
it was an historic day for the cooperative.
The fund provides a unique opportunity for the public to gain
exposure to the financial performance of Fonterra and the
global dairy industry.
"Farmer shareholders and unit holders will invest in the
performance of Fonterra through separate structures. What
they both have in common is the chance to be part of the
continuing performance of our cooperative - a New Zealand
success story, Sir Henry said.
Labour primary industries spokesman Damian O'Connor is
warning that the launch today of Fonterra units on to the NZX
will be the death knell of the cooperative as farmers know
Prime Minister John Key will ring a bell at noon to launch
"The Prime Minister has long been a supporter of
strengthening the capital markets and providing opportunities
for trading in New Zealand.
"While investors have been hugely enthusiastic about Trading
Among Farmers [TAF], our famers should be extremely wary of
that given the upward pressure on the share price and the
additional cost that it will mean for Kiwis wanting to get
Mr O'Connor suggested a legislative cap was needed on the
number of units available for investors, something that would
ensure farmers could retain control of Fonterra.
Without such protection, New Zealand's biggest and most
successful cooperative wa set to become the latest victim of
the Government's hands-off "she'll be right" policies, Mr