Offer by Mainzeal caught in doldrums

Press, 30 November 1987, Page 42

Offer by Mainzeal caught in doldrums

PA Wellington Mainzeal Group’s one-for-four share entitlement offer, dated October 14, was supported by more than 2400 shareholders when registration of renunciations closed last week. Mainzeal’s chairman, Mr Peter Menzies, said in a statement that with the conservative valuation of the shares being offered in Mainzeal Group, directors had expected the entitlement offer to be well supported. But recent market doldrums have resulted in the issue not receiving the level of acceptance expected. “The decision of several

institutional holders of Mainzeal Properties shares, who were also sub-un-derwriters, not to take up their Mainzeal Group entitlement in favour of taking up their allocation under the sub-underwriting agreement has tended to understate the excellent support received in these difficult times,” Mr Menzies said. Mainzeal’s objectives had been met, and directors were satisfied with the result given the general economic environment, he said. The offer was not to raise funds for the company but rather to obtain initial listing. The company had adequate

resources for its present and likely projects, had no speculative investments, no significant land banking or any dependence on sharemarkets for its profitability. “Its forecasts are largely unaffected by the downturns in the financial markets. "The position of the company is absolutely sound and it is well positioned to take advantage of the potential that still exists in its sector of the property market,” Mr Menzies said. Share certificates would be mailed on December 4 and subject to the required approvals, listing is scheduled for December 9.