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Retail shareholders in the stock exchange operator, NZX, backed off taking part in its recent capital raising as the company’s market price dipped below the offer price.

NZX sign

Photo: RNZ / Angus Dreaver

Small retail investors took up barely a third of their entitlements, worth about $10 million.

NZX was looking to raise $44m through the issue of one new share for every nine held at $1.42 each to fund its purchase of a 33 percent stake in the global dairy auction platform.

The offer to investment houses was completed in late February, with about 68 percent of the entitlements taken up, raising $16m.

During the period the retail offer was open the NZX share price fell about 14 percent.

The more than 13m shares not taken up by smaller shareholders are now being offered to investment funds and brokers, through a type of auction called a bookbuild.

Investment bank UBS has underwritten the offer, guaranteeing NZX the full $44m sought.

NZX said any surplus proceeds from the sale of the unclaimed retail rights would be split proportionately among those who did not take part.

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