TRU Test abandons float plans

By NZPA

Tuesday 7th January 2003

Auckland-based agritech company Tru-Test has aborted its long expected sharemarket float because of a dull local market and international volatility.

The company had intended listing before the end of last year.

Executive director Keith Aitchison said the decision was made on advice from several quarters, including the company's institutional shareholders.

Tru-Test has 180 shareholders, including 10 institutions that trade stock on a grey market.

In November, a share split increased the number of shares on issue from 8 million to 32 million.

The largest institutional shareholder is ANZ Private Equity, which owns 12.4 per cent of the company. Other major shareholders include Westpac Banking Corporation, investment firm Rangatira, Citibank Nominees, National Mutual Life and ACC.

Mr Aitchison said the listing exercise had cost the company hundreds of thousands of dollars.

In addition, management had been tied up on the float for the last three months so they now had to catch up on a lot of work.

"We decided the market was not in good shape and that it would be wise not to list at the present time."

The original catalyst for listing was an undertaking to institutional investors a year ago to provide future access to capital markets and a vehicle for stock liquidity.

"But we have no great need for capital right now," said Mr Aitchison.

"And we had tradability in shares even before the institutions came on board."

The stock last traded at between $10.50 and $12. There has been no trading since the share split.

Mr Aitchison would not rule out Tru-Test looking again to list should the market improve in future.

"For now though we intend focusing on running the business. It would be fair to say that it has lacked attention recently."

Tru-Test has an annual turnover of about $125 million and in the year to August 2002 it made a net profit of $2.7 million.

It is one of the biggest pasture management electric fence manufacturers in the world. It also makes electronic livestock weigh scales and milk meters, wire products and associated fencing.

In September, Tru-Test paid an undisclosed sum - understood to be between $5 million and $10 million - to Neuronz for rights to its monitor that detects brain injury in premature babies.

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