The New Zealand Tourism Board (NZTB) announced it would launch a new travel stock in a bid to increase its share of the international market and attract new investors.
The announcement follows a flurry of speculation that the stock could become an alternative to travel-booking service Booking.com.au.
NZTB said the stock would be launched on the New Zealand stock exchange on October 10.
It will be available to buy at a “fair” price of $2.50 per share.
“The market has been very active over the last couple of months and there has been a lot of interest in our business and our business model, so we’ve decided to take the plunge and make the move,” NZTB Chief Executive Andrew Taylor said.
The stock will be listed on the NZTB’s website, but no stock will trade in the New York Stock Exchange.
The move follows a surge in interest from investors and is the first time the stock will open on the market.
NZTBA Chief Executive and New Zealand Board of Trade Minister Helen Glover said the NZTTB’s stock is not just a tourist destination stock but also an asset that can be used by tourists as well as business travellers.
“This is a stock that is designed for business travellers, so if you are looking for a way to get a feel for what the market is like or a way of taking advantage of the growth opportunities, then we would definitely consider this a great asset to consider,” Ms Glover said.
“We have already had a few people from overseas come to New Zealand, so it’s not like they’re just tourists.”
The stock was announced at a special press conference held in Auckland on Wednesday, but has not been publicly announced since.
The NZTB expects the stock to trade at a fair price of just $2 per share, and is expected to be listed in New York’s New York City Stock Exchange (NYSE).
“The NZTB has made a bold move by opening up its New Zealand travel stock and will be the first of its kind in the world,” Ms Taylor said in a statement.
“In terms of the timing, we are really excited about this opportunity and are looking forward to the opportunity to gain some additional visibility and exposure to this exciting new asset.”
NZTB is the only overseas trading company to offer a travel stock, with travel-focused stocks in China, Europe, Japan and Asia already listed.
Travel stocks have a long history in New Zealand and the NZtbs stock is one of the countrys largest and most popular, with nearly $300 million in sales.
Ms Glover has previously described the stock as “a real opportunity for people from around the world to buy and sell their Kiwi holiday stocks”.