Westpac emerges as major Goodman shareholder

Westpac Custodian Nominees has emerged as the largest shareholder in the listing of Australasian food giant Goodman Fielder.

In a pre-float disclosure released to the New Zealand Stock Exchange this morning, Westpac - which provides clearing, settlement and safe keeping services to a large range of international clients, including the Westpac Financial Services group - tops the indicative list of top 20 shareholders with 354 million shares, or 26.75 per cent.

Westpac is closely followed by the Graeme Hart-controlled Burns Philp, which sold down its stake to 20 per cent in the IPO.

Rounding out the top five are JP Morgan, with 11.3 per cent, National Nominees Ltd, with 7.46 per cent, and UBS Nominees Ltd, with 1.79 per cent.

Sources close to the IPO have previously said there was aggressive scaling back of allocations for institutions following strong demand in Asia, Europe and the United States.

The resurrected food group is expected to be well received when it lists on the New Zealand and Australian stock exchanges at 2pm today.

Fund manager John Norling of Alliance Capital expected the listing to go well, although the fact that Australia has had to absorb A$7 billion ($7.61 billion) of IPOs this quarter may take the edge off demand.

Because local institutions were cool on the issue, they may be underweight and have to buy stock to match the weighting Goodman will have in the NZSX-50 capital index.

With a market capitalisation of A$2.65 billion, the company will have a 2 per cent weighting in the NZX top 50 index and will be ranked the 13th largest stock. It will also be in Australia's main index, the S&P/ASX.

Meanwhile, Goodman said in its pre-quotation statement that retail investors will get a maximum of 1000 shares, no matter how many they sought.

The trans-Tasman food giant said an application for the minimum amount allowed, $2000, would result in an investor being allocated 937 shares.

Those seeking to spend $2500 or more would get 1000 shares, worth $2130 at the IPO price of $2.13 per share.

Goodman's New Zealand brands include Edmonds, Kiwi, Huttons, Vogel's, Meadow Fresh, Tararua, Anchor butter, Irvines, Champion and Molenberg.

In Australia, it sells Wonder White, Mighty Soft, Vogel's, and Helga's breads, Meadow Lea margarine and Pampas pastry.

Today's listing will mark the return of Goodman to the Australian and New Zealand exchanges after the once underperforming company was taken over by Burns Philp in 2003 and transformed through a cost-cutting programme.

- NZPA