Fonterra Shareholders Fund

[Silverlight]

Down 5% over the past 2 days, below the original open price.

Lets hoped this continues back to 6ish so those who missed out can choose to take a position around $6, probably what the original IPO price should have been set at.

I have not heard much commentary out from the farmers about this pro and cons of the issue. While the higher value is good for them, the fact that Fonterra (the company they own) issused 90m shares at a price that was clearly below what market was willing to pay, their company has raised $50 -$100m less capital than they could have.

[skid]

Absolutely agree.
Those buying at todays price are buying into a co. worth 50-100m less than it could have been.
Balance ,your point that it wouldnt have fetched as high of a price if it wasnt listed overseas is fair enough,but Im sure those many Kiwis who tried to get allotments and failed[not to mention those that would have taken much more than was offered]would disagree with you.
Fonterra could have easily given kiwis ''first option'' on a larger share.
I suppose the ''selling NZ to overseas interests'' would merit a thread in itself.

[skid]

QUOTE
As to 48% of Fonterra shares being sold to overseas interests, I have no problem with that. I know for a fact that local institutions and investors were very lukewarm to the issue until the overseas investors showed extremely keen interest. Local investors cannot have it both ways-----

Why Not? If they had had the oportunity to buy,then they could have,and overseas interests could have taken the rest.
It simply would have been more oversubscribed on the overseas side of the ledger

[Balance]

https://www.nzx.com/files/attachments/168087.pdf

The Australians are the big buyers.

Interesting that.

I wonder what happened to the Indians and Chinese.

Fonterra may find themselves shut out of the Indian and China markets?

[Balance]

Chalkie's take on the allocation :

http://www.stuff.co.nz/business/opin...rra-allocation

"When Fonterra was canvassing instos for their interest, it is said, some of the local feedback about the fund's governance was too candid for its liking. The foreigners, on the other hand, were apparently just happy to be involved.

Chalkie reckons there is some truth in this scenario, having overheard one of Fonterra's own local investment banking advisers describe the structure as "a dog"."

[ratkin]

Has anyone here made the effort to find out what these might actually be worth?

[Balance]

Has anyone here made the effort to find out what these might actually be worth?

$7.56 - based upon yield and growth play by overseas investors.

[winner69]

$7.56 - based upon yield and growth play by overseas investors.

Balance mate .... I got $7.62 ... pretty close eh ... what brand of abacus you got?

[Balance]

Balance mate .... I got $7.62 ... pretty close eh ... what brand of abacus you got?

High tech HP calculator - 1992 pedigree!

[Jaa]

Milford's active fund has disclosed 1.2% of the fund is invested in Fonterra, worth nearly $984k by my calculation.

While their conservative fund disclosed they received what must have been a very small allocation (the fund is only $130k in size) and has sold it already??