Volatility on world financial markets has so far failed to derail plans for four new share issues destined to hit the market before Christmas, but it may prove a factor when it comes to pricing them, market sources said.
Greece's sovereign debt problems and fears that it will go into default have played havoc with market sentiment globally, but not to the extent that it has put any of the share market floats in doubt, investment banking sources said.
At stake are partial floats for retirement home operator and developer Summerset, online trading platform TradeMe, Telecom's network business Chorus, and retirement village company Vision Senior Living.
"I think everyone has pretty much decided to put the hammer down and go for it,'' one investment banking source said.
"These things are timed to coincide with each other and pricing is looking like it is going to be the differentiating factor,'' he said. But he said that if the sharemarket lost more ground, the issues' promoters would have to take another look at their timing.
The promoters are nevertheless keen to have their issues completed before the Government embarks on its partial privatisation programme, which is expected to start in the second quarter of 2012, assuming a National-led administration is returned to power at the November 26 general election.
Talk of new issues surfaced around the middle of the year, when the share market was at three-year highs.
Since then, the American debt ceiling impasse and Europe's escalating sovereign debt problems have acted to drag the market lower.
However, the local market has shown a degree of resilience. The NZX 50 index finished today (Tuesday) at 3290 points, down from 3554 in May, but well clear of its 52-week low of 3183 in August. At current levels, the index is around where it was at start of this year.
Big floats on the New Zealand sharemarket have been rare in recent years, so the market expects these new issues to add much-needed depth.
Among the listing prospects, Summerset is expected to register its prospectus tomorrow (Wednesday, Sept 28). Pricing for this issue will be set by a so-called book building process, which is expected to start next week.
Australian private equity company Quadrant is selling about 50 per cent of the company, which is expected to have a market capitalisation of about $400 million upon listing. The float will also involve the raising of around $50 million in fresh capital for the company's ongoing development.
The float of around 30 to 35 per cent of online auction website TradeMe by its owner, Australian publisher Fairfax, is expected to to be worth around $500 million.
A book build for TradeMe is expected to take place in the first week of November and the company is the process of appointing co-managers and joint lead managers for the issue.
A "roadshow'' for TradeMe is expected to happen towards end of October and the stock is expected to list in the first or second week of December.
The Vision Senior Living (VSL) float, worth around $80 million, is expected to list around October-November, or January-February 2012. Promoters of VSL are understood to be visiting institutions for a round of pricing discussions this week. VSL is a private equity venture, about 70 per cent owned by Goldman Sachs and Partners and Arrow Construction, a New Zealand construction group. It is understood Goldman and Arrow will remain in the company. Post-float, it is expected they will together own 50 per cent.
Telecom shareholders will meet on October 26 to vote on whether Telecom and Chorus will split in two. The company wants to break up so Chorus can take part in the Government's ultra-fast broadband scheme. If the separation gets the green light, the demerger will take place on November 30.
The state-owned enterprises earmarked for partial privatisation by the Government are Meridian, Genesis, Solid Energy and Mighty River Power. The Government also wants to sell down its 75 per cent stake in Air New Zealand.
