Allied Farmers shares lost nearly a third of their value by lunchtime today after 1.9 billion shares were issued to the former investors in Hanover Finance.
Last week, Allied Farmers narrowly secured the 75 percent support of Hanover investors needed to take over the failing finance company's assets in exchange for Allied Farmers shares.
The shares issued today account for 98.07 percent of the total Allied Farmers shareholding, and were issued at an acquisition price of 20.7c being the five-day volume weighted average price.
Around lunchtime today more than 5.7m Allied Farmers shares had been traded, with the price falling 4.8c to 10c.
Some confusion was being reported as to whether the new shareholders were able to trade the stock today.
Allied Farmers chief financial officer Hayden Monk said allotment notices, detailing the number of shares being sent to each former Hanover and United investor and their shareholder numbers, had been lodged with NZ Post yesterday.
Their faster identification numbers (FINs), which were being sent out separately for security reasons, were lodged with NZ Post today, Mr Monk said.
While a FIN was normally needed when selling shares, people could still sell without the number through their broker.
NZPA