DNZ Property pulls IPO

DNZ Property Fund is pulling its plan to list on the sharemarket until next year, citing confusion among shareholders due to a debate in the media.

The company is the second to pull an initial public offer (IPO) after dairy company Synlait called off its $150 million IPO last week. DNZ was seeking to raise up to $140m.

All applications received from the prospectus dated November 18 are being refunded.

The company said there has been considerable debate about the merits of the IPO.

"This has resulted in confusion and concern amongst some of our shareholders. As a result, the board feels it has a duty to take time to clarify matters for shareholders and correct any misconceptions.

"It is not appropriate to continue to debate the merits of these transactions in the media."

The debate was damaging the company's future prospects and had potential to undermine the relationship between the board and the shareholders.

"Therefore, the board has taken a decision to defer the process until next year," the company said.

The board said it had received overwhelmingly positive support from the New Zealand capital market and the decision to defer was a difficult one to make.

The company will re-establish the unlisted trading market in its shares.

"The board of DNZ continues to unanimously support the proposed capital raising and listing and firmly believes this is in the best interests of the company and its shareholders," the company said.

The IPO has been criticised by a range of people, including commentator Brian Gaynor, who considers the payment of $43 million for the management company as a one-sided related party transaction of a type that should be outlawed.

There has also been debate about the appointment of highly regarded former fund manager Simon Botherway to the board to increase credibility with investors.

-NZPA