Tegel chicken takes off


Shares in the country's biggest chicken producer, Tegel, have jumped 16 cents from its listing price of $1.55 on the New Zealand Stock Exchange.

Just after 11am, once the company started trading, the shares were priced at $1.71, up 10 percent.

It's the first major listing on the NZX, the only other listing this year was by Oceania Natural on the fledgling NXT market.

Tegel is also listing on the Australian Stock Market (ASX).

By becoming a public company, Tegel has been able to reduce its debt and provide funds for expansion into Asian markets.

At $1.55 a share, the company was valued at $550 million when listed. Now with shares trading 10 percemt higher, the company's market capitalisation has jumped to over $600 million.

Major shareholder, Claris Investments, will retain a 45 percent stake in the company following the listing.

Tegel has four major processing plants in New Zealand and 1700 employees.