Dairy farm manager MyFarm has extended the $3.5 million
initial public offering on its Southland, Gold Creek farm,
having gained the minimum $2 million investment required
during the past month.
The offering's prospectus opened on November 14. It has been
pushed out a further 12 days to close on December 16, the
settlement date for Gold Creek.
MyFarm last month launched the unregistered share trading
platform MyFarm Trading, and is selling some of its farms,
singly, into an individual company entity, or ''collective
investment vehicles'' (CIV), each of which will be able to
trade its shares on the MyFarm Trading platform.
Apart from Fonterra shareholder units, which deal in finished
products as opposed to milk production, MyFarm's individual
CIV's are the only way investors can obtain publicly traded
shares; requiring a minimum $20,000 investment.
The present initial public offering is for a CIV called GCF
Investments Ltd, seeking to raise up to $3.52 million, which
is a 40% share in the total equity being raised for Gold
Creek, 17km northeast of Gore.
Gold Creek, a 214ha, 620-cow property, is being purchased on
December 16 for $10.38 million, including about $1.8 million
for Fonterra shares, and debt.
On settlement of Gold Creek, shares in GCF investments will
be quoted on MyFarm Trading.
A MyFarm spokeswoman said yesterday the offer had reached its
minimum $2 million, but as it allowed for up to $3.5 million
of subscriptions, MyFarm decided to extend the offer until
the farm purchase date, December 16.
''We have some orders sitting there [MyFarm Trading] for
shares in our dairy farms already,'' she said.
MyFarm has about 47 farms under management, and aside from
having a platform available for the first time for smaller
investors, the concept would also increase industry access to
capital and create liquidity, or availability of share sales,
for farm investors.