Fonterra Shareholders Fund

[Balance]

Especially when more farmers (and friends of Fonterra) are buyers than seller.

So guess the listing price.

[Silverlight]

This is such a disappointing result for New Zealanders!

42% as gone to offshore institutions! 42%! They will just stag their holding and take their 10%, half of the NZ institutions that applied for stock did not get it!

Where are the media articles or journalists harassing Fonterra about this!

Everyone was up in arms about the Govt selling stakes in the power companies that may go to offshore holders, yet NZ's biggest company does it without one negative article, bypassing all the NZ investors, kiwisaver funds and long term NZ funds that actually care about supporting NZ companies.

Such a disappointing outcome.

[CJ]

I think I read (in NBR?) that they deliberately sold to overseas funds expected to stag to ensure there is liquidity.

Once they saw the demand from NZ, they should have pulled the overseas offering and saved some costs. Bad advice from their brokers as many IPO/Bond placements are explicitly limited to home country only due to disclosure rules so that wouldn't have been seen as anti foreigners.

Cant imagine this would win the Board any more friends with the Farmers.

[gv1]

Brokers have a part to play as well. ASB securites sent me docs late oneday and by next day sent me an e-mail advising that all was taken up and I could not get any...but they said unless I have posted it. Guess what i did...I did post one that day and got $10k but havent heard from Direct broking yet. They did not even offer one yet to me.

[J R Ewing]

This is such a disappointing result for New Zealanders!

42% as gone to offshore institutions! 42%! They will just stag their holding and take their 10%, half of the NZ institutions that applied for stock did not get it!

Where are the media articles or journalists harassing Fonterra about this!

Everyone was up in arms about the Govt selling stakes in the power companies that may go to offshore holders, yet NZ's biggest company does it without one negative article, bypassing all the NZ investors, kiwisaver funds and long term NZ funds that actually care about supporting NZ companies.

Such a disappointing outcome.

I think I share your sentiment, that a greater proportion could have been sold internally. But I doubt that the overseas institutions will be stagging, I think it is more likely they will be buying not selling after Friday. The locals on the other hand might be waiting for a lower entry point as suggested by some of the earlier posts.

[winner69]

Ensuring liquidity was an imperative .... the last thing Fonterra wanted was thousands of small NZ holders putting the them in the bottom draw ... except the likes of Silverlight who probably only wanted to make a quick bob anyway

Instos turn their investments over (more than they should) quite regulary .... and bear in mind that going forward a successful Fonterra will need heaps more capital in future year and broad base of global moneymen is better bet for them

[J R Ewing]

I think I read (in NBR?) that they deliberately sold to overseas funds expected to stag to ensure there is liquidity.

Once they saw the demand from NZ, they should have pulled the overseas offering and saved some costs. Bad advice from their brokers as many IPO/Bond placements are explicitly limited to home country only due to disclosure rules so that wouldn't have been seen as anti foreigners.

Cant imagine this would win the Board any more friends with the Farmers.

It does seem odd that Fonterra would go out of their way to ensure they sold to institutions intent on stagging rather than investing. And why would Fonterra be concerned with liquidity? Is that so that there is a guaranteed pool of shares ready to be sold into the market slightly above the list price so that the Farmers don't think the units have been sold off too cheap? If so, i would have thought it would have been easier just to sell the units at a higher price, given that there was supposed to be so much excess demand.

[Silverlight]

Ensuring liquidity was an imperative .... the last thing Fonterra wanted was thousands of small NZ holders putting the them in the bottom draw ... except the likes of Silverlight who probably only wanted to make a quick bob anyway

This is the sharetrader forums and that is the name of the game, however come Friday, I will be looking to buy a small holding if I can below $6. Above this level the risk/ yield becomes less attractive.

Instos turn their investments over (more than they should) quite regularly .... and bear in mind that going forward a successful Fonterra will need heaps more capital in future year and broad base of global moneymen is better bet for them

While institutions do buy and sell regularly many have core positions that they do not alter. If you read the ACC annual reports for their top holdings over the past 5 years, Telecom, Fletchers, BHP, Contact, Auckland Airport, ANZ bank, will always be there, going forward Fonterra will probably be there too. You will find a similar pattern across most NZ fund managers.

There is plenty of capital in NZ looking for a home to invest, now and in the future, kiwisaver providers alone have $15b under management now, and they alone could have taken up the issue, on behalf of many NZ investors who did not get a look in. I just think overall, while there may have been benefits to scratch the back of overseas investors, I doubt long term they care about Fonterra, and are just looking to make a "quick bob".

[macduffy]

We'll have to wait and see who sells and who buys but should remember that Fonterra sells the bulk of its products overseas so will be mindfull of the need for publicity and promotion in those markets, hence the overseas placements.

Having been less than lukewarm about this issue I've become keen enough to take a small holding, largely based on the expressed demand for the units. " When the facts change, I change my position!" It just might be the one NZ farming-related security to come up trumps!

[POSSUM THE CAT]

Silverlight would you sell for less than someone else offered. If you were willing to take the risk of going at the final price you could have bought some.