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Investore IPO hits top price

NZN 21/06/2016 Paul McBeth

Stride Property's plan to spin out and list its Investore Property subsidiary has been priced at the top of the range by institutional investors in an initial public offering set to raise $185 million.

The IPO has been priced at $1.49 a share after the bookbuild was completed, with $170m allocated to institutional investors and brokers and $15m set aside for eligible Stride shareholders.

Investore also got commitments to subscribe for the full $15m reserved for those shareholders who don't take up the offer. The indicative price range was between $1.37-and-$1.49 a share.

"We are pleased with the strong support from our Stride shareholders to both the offer and our strategy at Stride," chairman Tim Storey said.

It endorsed the strategy of creating a specific investment through Investore and growing its real estate investment management business, he said.

Stride will distribute Investore shares to its own shareholders at a one-for-four ratio as part of a listing on the NZX main board.

Stride will keep a 19.9 per cent stake in Investore, while Stride shareholders will collectively hold 33.4 per cent to 38.2 per cent.

The proceeds will help fund Investore's $267m acquisition of 14 Countdown supermarkets, which will form part of the real estate investor's 39 large format retail property portfolio.

The Stride shareholder offer for the Investore IPO closes on July 5, and Investore will start trading on July 12.

Stride shares rose 0.2 per cent to $2.29, and have gained 5.1 per cent so far this year.

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