has advised New Zealand King Salmon on its dual listing on the NZX
Main Board and ASX with a market capitalisation of $154.5m.
Private equity firm Direct Capital sold down its entire investment in New Zealand King Salmon as part of the IPO.
“We’ve only had five IPOs under the financial Markets Conduct Act,” said lead partner on the deal Rachel Dunne.
She said the New Zealand King Salmon IPO took advantage of the “more liberal” pre-registration advertising regime under the FMCA.
“The FMCA does afford issuers the opportunity to publish information ahead of the PDS being registered so that’s exactly what we did,” Dunne said.
New Zealand King Salmon predominately operates in the Nelson Bay, Marlborough region and sort to look after residents of the area by having a priority offer available to them.
“In order to make the priority offer meaningful though, they wanted to get expressions of interest from them,” Dunne said.
“And in order to do that, we published quite a detailed fact sheet about the company before registration of the PDS.
“We were able to accurately assess what the likely demand was going to be on the priority offer.”
New Zealand’s IPO market has been slightly depressed in recent years, a reflection of global uncertainty. And with only three IPOs this year, equal to last year’s tally, Dunne said while the market may see some further activity this year, its unlikely New Zealand will see a return to 2013/14 levels any time soon.
But she did say private equity is strong at the moment as a number of firms have recently or are currently raising funds.
“There’s still a lot of money in New Zealand look for a home, so there’s no shortage of investors out there, it’s just about making sure the asset comes to market as a quality asset,” she said.
“The securities act is well and truly done with and we should all be looking for ways to innovate in terms of making information available to investors at the right time and in the right format."