AACL Holdings had to work hard to convince investors to buy shares in its float. The agricultural investment company relies on managed investment schemes (MIS) for funding.
Great Southern and Timbercorp's collapses last year badly damaged MIS stocks and related agribusinesses.
Small stocks such as Forest Enterprises Australia and Willmott Forests have slumped, and shares in Gunns, Australia's largest forestry company, are sharply lower since 2008, according to The Australian Financial Review.
Market weakness for much of February also made it difficult to raise capital. But AACL's float eventually closed oversubscribed, with $11 million raised. Listing is due within two weeks.
Capitalised at $18 million at the full subscription, AACL is much smaller than other listed MIS companies, and has a different product offering, balance sheet and business model.
The Perth company is involved in wheat, barley and canola. Timber, and more niche offerings such as olives, grapes and almonds, characterise the MIS sector.
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