ANOTHER NEW BANK

Dominion, Volume 22, Issue 71, 17 December 1928, Page 12

ANOTHER NEW BANK

“AUSTRALIAN AND NEW ZEALAND CORPORATION” STOCK EXCHANGE WITHOUT INFORMATION Dominion Speci.il Service. Christchurch, December 15. Several residents of Christchurch have been approached recently by share salesmen and have had placed before them a proposition in connection with the flotation of “The Australian and New Zealand Banking Corporation Limited.” It is said that many have applied for shares, even though the prospectus is not to be published till January, 1929. As the Christchurc i Stock Exchange authorities possessed no knowledge of the flotation of the Australian and New Zealand BankingCorporation Ltd., the Stock Exchange authorities of Sydney and Melbourne were communicated with and a repl> was received from each exchange that nothing was known of the flotation, and advising caution in dealing with it. The following is a reprint of a document purporting to be “a statement of facts and iigtires re the flotation of the Australian and New Zealand Banking Corporation Limited. It is printed verbatim: “Capital five millions in five million shares of £1 each. The shares will ba paid for as follows:—Ten per cent, on application, fifteen per cent, on allotment, the balance in six semi-annual payments. The directors will each underwrite 10,600 shares. The company will go to registration in New South Wales prior to January 31 next. The prospectus will be published in January, 1929. The underwriting of one million is arranged for in Australia and New Zealand. When one million shares have been definitely underwritten in Australia and New Zealand, we have a definite promise of three millions in the London market. A contract will be referred to in the prospectus showing that two to four millions will be provided iu the overseas market. The commission to be paid by the bank will be 5 per cent., the underwriting charges will be 24 per cent. The bank will pay all establishment charges. It is definitely agreed that the bank will not open its doors for business with less than one million in cash. The directors will be in equal numbers in Australia and New Zealand. It is proposed that there should lie three directors for each island in New Zealand. We wish to emphasise t’ e fact that the overseas money will be paid in full and will not be in deferred payments as iu New Zealand and Australia. A special note of real interi t will be found in the morning ‘Press’"t Christchurch, wherein the Stock Exchange reports that bank shares :i'*e always a gilt-edged investment. T';e same report discloses the faet that tee average increase in bank shares duri 'g 1928 Is 71 per cent. The following figures are most illuminating: Bank "C New South Wales, par value £2O. market price nearly £52; National Bank Australasia, par value £4O. marl ’t. value nearly £l9. Numerous otl -r banks disclose similar highly satis! tory figures, therefore the value "f bank shares stands out as luminous as a sunbeam."