An email to shareholders from Fonterra chair Sir Henry van der Heyden says the final price of units in the company’s Shareholders’ Fund is $5.50.
That is at the op end of the price range in the fund prospectus.
Shares on the Fonterra Shareholders’ Market are expected to tract the price of units in the fund when trading starts on Friday.
The fund will launch at $525 million following strong investor interest.
This means eligible farmers, sharemilkers, and retired farmers will get their requested amounts under Friends of Fonterra
There are more than 9,500 investors in the fund which meets the company’s goals for liquidity in the unit market
More than half – 58% – of the units allocated went to New Zealand retail and institutional investors, and Friends of Fonterra (including Bonlac)
The rest were allocated to offshore institutions
The board will issue around 90 million Shares to the Fonterra Farmer Custodian to support the fund size of $525 million
The impact on earnings per share is about one cent per share at most.