LIC migrates to NZX’s Main Board

Herd improvement and agritech co-operative LIC will move to the Main Board of the NZX (NZSX) next month, transferring from the Alternative Board.

This comes as NZX announced it will move to a single equities board from July 1 and close the NZAX and NXT.

Of the companies migrating, LIC is the largest by market capitalisation, at approximately $109 million.

There are around 14 agritech companies featured on the NZX Main Board and only one other farmer-owned co-operative (Fonterra).

LIC chief executive Wayne McNee says, “We’re excited to join the NZSX and be featured alongside some of New Zealand’s best-known brands and companies.

“The presence of LIC on the Main Board is an opportunity to further strengthen the profile of the primary sector on the NZSX.”

McNee says the migration will not impact its 10,300 farmer shareholders.

LIC debuted on the NZAX in 2004 and employs 750 full time staff.

In the past four years, LIC has undergone a significant transformation programme, including separating its genetics and agritech businesses, completing a capital restructure and strategy refresh.

The results of this work are flowing through into its results, with its latest half-year results showing revenue and net profit up, and the company is on track to hit its forecast of $18-22m for 2018/19.

The move to the Main Board also means LIC will become subject to listing rules which impose enhanced governance requirements.

The co-operative is working with the team at NZX to ensure all the necessary approvals are in place for LIC shares to transfer to the NZSX Main Board on 1 July.