Combined building societies debut on NZX

Tuesday 1st February 2011

Newly created "heartland bank" Building Society Holdings debuted on the sharemarket this morning, with shares opening at 95c.

Building Society, incorporating Canterbury Building Society, Southern Cross Building Society and Pyne Gould Corp's Marac Finance, merged last month and aims to become a registered bank.

It has net assets of around $310 million, total assets of around $2.2 billion, and an investment grade BBB- rating from Standard & Poor's. Marac is the largest entity, followed by CBS and SBS.

"Having three institutions with such a strong shared history combining, and committing to keeping investors informed via our public markets, is positive for the finance sector and for the New Zealand investment community," NZX chief executive Mark Weldon said.

By early afternoon, the company's shares slipped to 88c on the back of 227,575 traded, valuing the company at $264m. They hit a low during the session of 85c.

NZPA

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