A potential dairy farm investor has pulled the pin on its share offer, after failing to raise enough money.
Pastoral Dairy Investments had hoped to raise $25 million through an initial public offering, with private institutions expected to invest another $50 million.
But Pastoral Dairy Investments spokesperson, Neil Craig, says strong initial interest in the deal didn't translate into applications, particularly in the provinces.
"If we couldn't get $25 million, we weren't going to go," he says.
He declined to say how much was raised but said interest had been affected by the recent softening of returns in dairying.
There is a perception that dairying is for dairy farmers, who need millions of dollars to set up their own operations.
Individual urban investors could put sums of $250,000 and above into farming partnerships, but below that there was little scope for smaller investors to get into the sector.
The company is still seeking a "significant" cornerstone shareholder to underpin any eventual return it made to the market.
