18th December 2017
Offshore Ownership Continues to Grind Higher
- The New Zealand market has maintained its appeal to offshore investors during 2017 with ownership increasing to 37.9%, from 36.3% in 2016. This is the highest level since 2009.
- The remarkable uptake of both a2 Milk and Xero, (now majority owned by offshore investors) has had a notable influence on the overall proportion of foreign ownership in NZ. The effect on the JBWere Equity Ownership Survey is significant; if we exclude the impact of these two constituents we would have seen a 0.60% decrease in the level of foreign ownership in NZ, with bond-like equities generally less well owned.
- Initial Public Offering (IPO) activity has remained subdued in 2017 with Oceania Healthcare being the only company to come to market . Despite the supportive market environment the pipeline is anticipated to remain relatively quiet heading into 2018 with Vodafone NZ being the only known potential float at this stage.
- The most significant change in this year’s survey was the total New Zealand market capitalisation to GDP ratio which increased by 4% to 46% on the back of strong returns that have surpassed the increase in GDP over the same period. This level of market capitalisation to GDP is the highest level since 2000 and significantly above the historical 39% average.
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