A research firm is advising investors to stay clear of Fonterra’s shareholders fund until after its units start trading.Morningstar Research says investors won’t know the price they’ll be paying or the quantity of units they will be receiving until after Fonterra’s bookbuild process is finished.
Fonterra will open up 525 million dollars worth of economic share rights as it looks to cut its redemption risk.
The Morningstar report also predicts units will be traded on the NZX for five dollars 50 per unit.
It warns investors to be weary of Fonterra’s position in global dairy trade, saying it’s susceptible to dairy price changes, exchange rates, and milk supply numbers.
Source: Â Farmingshow