Another finance coy goes public

New Zealand Finance Holdings Limited has launched a public offering of shares and intends to seek a listing on the main board of the New Zealand Stock Exchange.

Thursday, September 2nd 2004, 6:30AM

The move is part of an expansion and diversification plan aimed at building on the company's steady growth over the past five years.

New Zealand Finance Holdings is the holding company for wholly-owned subsidiaries New Zealand Finance Limited (NZF) and New Zealand Mortgage Finance Limited (NZMF). The company is based in Auckland and has agents throughout New Zealand.

For the 12 months ended 31 March, 2004, New Zealand Finance Holdings recorded a consolidated net profit before tax of $2,872,819 (after tax $1,868,599). If the offer is fully subscribed, market capitalisation of New Zealand Finance Holdings Limited based on the issue price will be $20.7 million.

Chairman Richard Waddel said over the past five years New Zealand Finance Holdings had achieved a number of milestones, which led the board to the view that it was now an appropriate time to expand the company's capital base.

He says the success of New Zealand Finance Holdings to date can be attributed to the strong credit culture which has been instilled by the company's executive directors, who have extensive banking and commercial backgrounds.

He said the quality of past and current lending transactions should hold the company in good stead into the future, where changing economic conditions will put pressure on competitors with less robust credit procedures.

Managing director John Callaghan said a prospectus for the offer had been registered, and the offer will open on September 8 and close on October 1, with trading on the NZSX is expected to begin on October 6.

Callaghan said that with the company seeking less than $3 million, the issue has not been underwritten.

"This is about repositioning and raising the profile of the company for our planned growth over the next three years. As a niche mortgage provider we see a number of good opportunities in our market segment and this listing will enable us to continue to develop and expand our market share in New Zealand."

To see what NZ Finance's home loan rates are like Click here

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