New Zealand Rural Land Company to list on NZX stock market

The company is looking to raise between $75 million and $150m.
The company is looking to raise between $75 million and $150m. Photo credit: Newshub.

The recently formed New Zealand Rural Land Company is planning to list on the NZX stock market later next month with an initial public offer of shares.

The company is looking to raise between $75 million and $150m, and follows a private capital-raising for wholesale investors in June and July.

The company plans to invest in rural land, without direct exposure to agricultural operations and commodity price volatility.

It is offering between 60 and 120 million shares at an issue price of $1.25 each.

"We consider that there is long-term value in rural land and that coupling that value with regular and long-term lease payments makes this structure an attractive way to access one of the New Zealand's largest and most important asset classes," director Chris Swasbrook said.

The company would offer long-term leases of about 10 years to farmers and other producers, with a minimum targeted gross lease rate of 4.5 percent a year.

"Rural land is the backbone of New Zealand. We see the New Zealand Rural Land Company as providing further support to our world class agricultural sector and offering it additional stability with long-term capital and New Zealand ownership," he said.

The company planned to debut on the NZX main board on 18 December.

RNZ