KEY POINTS:
PGG Wrightson offshoot New Zealand Farming Systems Uruguay is considering further capital raising ahead of its planned NZX-listing in December, after paying over $40 million to more than double its land holdings in the South American nation.
NZFSU director Craig Norgate, who is soon to be chairman of listed rural services supplier PGG Wrightson, said recent farm acquisitions had boosted the venture's presence in Uruguay to 26,523 hectares, well up from a June tally of close to 12,000ha.
The company bought the farms for an average price close to a "targeted level" of US$2000 (NZ$2870) a hectare.
Norgate said demand for shares in the company was such that an additional capital raising was probable and that planning was well under way for listing on the NZX in mid-December.
"We're committed to listing prior to Christmas and we've got an awful lot of demand for the shares, so we're considering whether we do a placement ahead of that listing," Norgate said.
The figure had yet to be decided, but would be less than the $170 million of capital on issue.
"I don't think it would be as much as that," said Norgate.
He added that NZFSU, which was established by PGG Wrightson last year to exploit NZ-style dairy and beef farming opportunities in Uruguay, would begin producing milk this month, with more dairy sheds to be commissioned in the autumn.
However, he said it would take several years before it was operating "fully irrigated dairy farms".
"We think we've got the development pathway well and truly sorted out now," he said.
