ihug, New Zealand’s original internet pioneer, today announced its plan to list on the NZSX. This will be through its parent company, ASX-listed Australian ISP, iiNet Limited (ASX: IIN), which intends to become an Overseas Listed Issuer on the NZSX, on Monday 19 April.

The Company will list 79,461,916 ordinary shares. At today’s prices, iiNet will have a market capitalisation in excess of NZ$220m. iiNet is not currently seeking to raise any capital in connection with the listing.

“The decision to list iiNet on the NZSX was a logical step for the company given the number of New Zealand investors who are already substantial security holders of iiNet,” says iiNet Chairman, Peter Harley.

At 31 March 2004, more than 25% of iiNet’s issued capital was held by New Zealand investors.

“As ihug continues to maintain a strong and growing market presence, especially within New Zealand, we expect that this listing on the NZSX will generate significant investor interest, particularly in view of iiNet’s excellent growth, financial performance record and consistent dividend policy.”

After posting a record net profit, before goodwill amortisation, of $3.7 million for the 6 months ended 31 December 2003, iiNet declared a fully franked interim dividend of 2.5 cents per share. The Company expects to continue to pay semi-annual dividends for the six months to 31 December and 30 June of each year, based on earnings for that respective period.

As iiNet will be a New Zealand Imputation Company under the Trans-Tasman imputation regime, there will be an option to attach New Zealand imputation credits to dividends payable to shareholders. This will ensure the New Zealand-resident shareholders obtain some benefits from the imputation credits arising in New Zealand.

Growth record

Since its inception in 1993, iiNet has progressed from a small operation located in suburban Perth to a leading Internet services provider with operations in Australia and New Zealand.