BioVittoria share offer delayed, third IPO to stall

Lan Fusheng, BioVittoria Chinese president and national expert in Luo Han fruit, with a crop in China. The fruit is dried and used as a sweetener.

BioVittoria, the Hamilton-based biotech firm, has pushed out the closing date for its initial public offering after financial advisers asked for more time to sell the investment, making it the third float in a month to hit speed wobbles.

The company, which is looking to tap new investors on the stock exchange for some $20 million to commercialise a sweetener extract, extended it closing date to December 29 from December 11.

It is the second delay for the sale originally slated to close November 25.

In a statement to the NZX, BioVittoria said it's "moving towards its minimum subscription level" of $8 million, but competing offers had left investors with too many options and its advisers "indicated that they require further time because of the relatively unique nature of BioVittoria as an investment."

"It is late in the year and I wouldn't expect to see any more" offers to the market, said Stephen Walker, head of asset management at Goldman Sachs JBWere. "It would be nice to have them spaced out a bit - if you have to get the funds for several offers at the same time, it becomes quite a tall order."

BioVittoria joins property investor DNZ Property Fund and dairy company Synlait Milk to have their plans to list on the stock exchange hit some troubles after resurgent markets gave companies the confidence to consider public offerings again.

DNZ had the money prepared, but shareholder MMG declined to support the deal, while Synlait struggled to secure investor support.

Walker said there was still an appetite for new opportunities, and that the wobbles in these offerings had occurred for "quite different reasons."

Investors have been flush with opportunities in recent months, with offerings from the listing of discount outdoor equipment retailer Kathmandu, a new prospectus from South Canterbury Finance, and bonds issued by Auckland International Airport and the University of Canterbury.

"We'd all like to see other opportunities, particularly in companies where there's some good growth," Walker said.