PRINTABLE VERSION   EMAIL TO A FRIEND   RSS FEEDS 10:05 UK, 30th Nov 2012, by Agrimoney.com
Fonterra investors share $100m in first-day gains

Investors in Fonterra Shareholders Fund split paper gains of more than $100m as the shares soared on their first day of trading, spurred by a rush for exposure to the world's top dairy exporter.

Shares in the fund, which tracks the performance of Zealand-based dairy giant Fonterra, closed up 25% at NZ$6.85 on their first day of trading, raising the market value of the fund to some NZ$650m ($530m).

The performance implied a value for Fonterra as a whole of some NZ$10bn, ($8.2bn), about NZ$2bn more than at the price the shares were offered at to a mixture of New Zealand and foreign investors.

And at the fund shares showed even bigger gains earlier in the day, hitting NZ$6.95

CEO reaction

Theo Spierings, the Fonterra chief executive, remained cautious over the shares' future performance.

"The spike was higher than what I expected really," he said.

"Let's see where we land and let's see where we are in two to three weeks."

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