The inaugural auction of MyFarm KiwiFruit Fund shares in New Zealand concluded with a clearing price of 82c per share, according to Louise Bignall, head of client relations at MyFarm. Initially, fund investors were part of syndicates across 17 gold kiwifruit orchards located in the Bay of Plenty and Northland regions. These syndicates were later consolidated into a singular fund valued at $200 million. The fund has now opened its doors to new wholesale investors, requiring a minimum investment of 20,000 units valued at $1 each.
Following this transition, around 40 new investors have joined the ranks, alongside 550 existing syndicate members, now fund investors. The first quarterly auction saw 2.21 million shares being offered, with prices ranging from 82c to $1.05, accounting for 1.9% of all units issued. The auction resulted in the sale of 270,000 units, equivalent to 0.2% of the total 118 million units available. Bignall noted that these shares were acquired by a combination of new and existing investors.
Subsequently, trading resumed on the Syndex platform, a continuous market where bids and offers for units are placed throughout the year. Currently, the lowest offer price stands at 92c. Bignall remarked on the fund's establishment in July and its performance over a single quarter. The fund was initially formed with $117m from investors, with an additional $1m of new equity introduced. Bignall emphasized the fund board's commitment to achieving a strong first-year result and meeting the 4.5% net target for distributions, which she believes will enhance unit price and liquidity.
Source: Farmers Weekly