Fonterra chairman Sir Henry van der Heyden says a $5.50 unit price for its investment fund, and a $525 million pool, is positive news for farmer shareholders.
But the news has split NBR Online readers and is clearly unpopular in some quarters.
"A Harriet" congratulates Fonterra, while another comment says: "Good result. Well thought through and priced well. Well done to Fonterra's board."
However, many commentors are disappointed 42% of units have gone offshore.
"The desired funds would have been covered within NZ," says one.
Another says: "A lot more should have gone to New Zealand investors. This was poorly thought out by the board."
"So much for the small Kiwi investor," says a reader who claims their allocation was cut by 66%.
"Not a good outcome," notes another, who has been associated with Fonterra for 45 years and says their allocation has been cut by 75%.
Regular comment contributor Pablo wonders why New Zealand investors have been scaled back, saying there is no reason why overseas investors cannot buy once trading starts.
One financial cynic says the unit price is a "one-way journey to $10, yielding 3.2%".
"The big brains who designed this mess have replaced redemption risk with supplier flight."
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Winston's choice: Jacinda Ardern poised to become prime minister
- Kiwi drops near five-month low as NZ First backs Labour-led coalition
- Nats baulking over Winston Peters' demand for more ministers
- Kraft Heinz buys ANZ Cerebos assets for $A290 million
- Two CAs appointed chairwoman and director of NZ CA
Most listened to
- Rob Hosking on Winston's choice
- IDC's Chayse Gorton on Kiwis' online vs offline shopping preference - and how it's out of step with the rest of the world
- NZSA chief executive Michael Midgley on how he will vote undirected Fletcher proxies
- Restaurant Brands' Grant Ellis discusses progress at the fast food group
- Rob Hosking says politicians need to understand the effect their promises will have on what the Reserve Bank has to do
- AMP Capital investment manager Jonathan Armstrong discusses why an expansion is right for Tauranga's Bayfair shopping centre
- NBR Radio: The best interviews, with Grant Walker — updated daily