Record $3.17b new equity raised on NZX

Recapitalisations by debt-laden listed companies and a smattering of initial public offerings has lifted the amount of capital raised on the NZX this year to a record - and hundreds of millions more is likely to be raised before the year's end.

NZX November operating figures released yesterday show $3.17 billion in new equity has been raised so far this year, surpassing the $3.02 billion record set in 2007.

The number includes $490.89 million raised in November alone, which captures Kathmandu's $421.9 million dual IPO on the NZX and Australia's ASX and PGG Wrightson's $217 million equity component of its $249 million capital raising.

Other big raisings include Pyne Gould's $270 million recapitalisation and the F&P Appliances and Nuplex deals several months ago.

The activity in November appears to have stoked turnover with the total value of NZSX trades for the month of $1.9 billion, 43 per cent up on the same period a year earlier when the market was in the grip of the global crisis.

Together with the $3.02 billion raised so far this year on the NZDX debt market, total capital raised on NZX Group markets now stands at $6.19 billion - more than twice as much as at the same time a year ago, and 33 per cent ahead of 2007 which was previously the record year.

There is every indication several hundred million more in equity will be raised before the year's end, although at least some of it is under less than salutary circumstances.

Although dairy company Synlait's IPO is on hold, property fund DNZ's controversial $151.5 million IPO is going ahead and BioVittoria's $20 million issue is in process.

What independent advisers Grant Samuel this week called the "back door listing" of Hanover Finance via Allied Farmers will be completed later this month if bondholders give their approval. The new Allied Farmers shares will have a theoretical value of just under $400 million but they are expected to initially trade at a steep discount to their issue price.