Brian Gaynor Blog

The expected announcement that Airwork will list on the ASX is another clear indication that New Zealand is a capitalist economy that is woefully short of capital. Airwork’s move follows the cancellation of the Synlait and DNZ Property Fund IPOs, problems with the BioVittoria IPO and Australian investors ending up with nearly 90% of Kathmandu.

New Zealand’s problem is best summed up in a recent graph produced by BNZ’s economic team. 

New Zealand’s saving rate slipped from minus 11.0% of disposal income in the March 2008 year to minus 13.7% in the latest year. We rank well behind other OECD countries as far as household savings are concerns and this is one of the main reasons why our companies have to go to Australia to raise new capital.

Airwork was listed on the NZX in the 1970s but was delisted in the early 1980s following a typical Brierley Investment deal that resulted in Kidd Garrett acquiring Airwork’s listing.

Australian media sources report that Airwork will list on the ASX early next year and will be valued at approximately A$350 million.

Our pathetic savings rate is forcing more and more New Zealand companies across the Tasman in order to acquire equity funding.