The listing of an education provider on the stock exchange is an interesting prospect, fund managers say.
However, they would have liked to see the main shareholder retain a bigger stake.
Australian-listed investment company Arowana International is targetting New Zealand investors in a bid to raise up to $234 million from a dual listing of its education provider, Intueri Education Group.
Between 75 and 85 million shares are expected to be offered at an indicative range of $2.25 to $2.75 per share, and Arowana will reduce its holding in Intueri to between 15 and 25 percent.
Part of the proceeds from the float will pay for Arowana's purchase of another New Zealand education business, Quantum Education Group, estimated to be about $60 million.
Milford Asset Management investment analyst Sam Trethewey said the offer was interesting but it was always good when the selling company held more of a stake.
"It would be nice to see them retain some more skin in the game in terms of their shareholding post IPO (initial public offering) in Intueri as well.
"The higher the retained proportion of ownership by the vendor in an IPO is always a good sign that they believe in the business and that they think there is more value to come."
Devon Funds Management portfolio manager Nick Dravitzki agreed it was an interesting prospect because it was the first company of its type to be listed on the New Zealand stock exchange.
"There's one company that's quite similar that's recently been listed in Australia, and another educational provider there that has parts that are similar," Mr Dravitzki said.
"But in the New Zealand context, this is quite new, and so it's interesting that something of this nature has come along and, from an investment point of view, it provides a bit of diversification across the market."
