Most Of Loan Taken By Underwriters

Press, Volume C, Issue 29518, 20 May 1961, Page 10

Most Of Loan Taken By Underwriters

(N.Z. Press Assn.—Copyright) LONDON, May 19. New Zealand's £2om. issue of 6 per cent, stock maturing in 1972 had proved a casualty of dull conditions in the gilt-edged market, the “Daily Telegraph” reported today. It was announced after business hours that underwriters had been left with 88 per cent, of the issue. “Although the terms of this operation were pitched just about right, the amount involved was large and success depended on a good following wind from the market,” said the newspaper.

"That, unhappily, was not forthcoming, with the result that the institutional investors. on whom full subscription depended, held off." Lists opened at 10 a.m. and closed at 11.30 a.m., and 88 per cent, of the stock was taken by the underwriters The Bank of England announced that all applications were being allotted in full.

Dealings in the new scrip will begin this morning and an opening discount of about one half point on the issue

price of 98) is forecast as the opening basis. “The Times" described the terms of the offer as “quite reasonably in line with those of comparable stocks." The fact that the stock war thought likely to reach a small premium before long showed that New Zealand was. with Australia, “one of the. probably, only two Commonwealth countries that can still borrow on the London market on traditional ‘Dominion and Colonial’ terms " The result of the New Zealand issue was neither surprising nor disappointing, it said.