Shares in newly listed meat co-operative Silver Fern Farms shed nearly a third of their value in the first week of appearing on the Unlisted exchange.
By late yesterday, the shares, which were listed on Tuesday at $1, were trading at 70c, with 52,500 having been sold for between $1 and 70c in eight sales resulting in total turnover of $47,500.
Silver Fern Farms (SFF) issued 81,443,550 ordinary shares after cancelling 25,668,917 rebate and 17,234,819 supplier investment shares, following an exchange offer to shareholders.
Shareholder approval of changes to SFF's constitution earlier this year means shareholders may sell shares directly to each other or to general investors on the Unlisted exchange.
SFF chairman Eoin Garden has said the public listing was an independent valuation of the company and its performance.
A week ago, SFF issued its annual result, saying while it had strengthened its balance sheet, a much reduced operating profit meant it would not be paying an end-of-year distribution to suppliers.
A fluctuating currency had eroded margins and resulted in a $70.6 million year-on-year fall in profit before member distributions, income tax and non-recurring items, from $75.7 million to $5.1 million.
However, debt was reduced by $58 million during the year and equity improved from 41% to 52%.
If the $23 million in new capital raised from shareholders was added, equity would have increased to 54%.
