A further $50m will be sought from high-wealth individuals or charitable organisations, as co-investors.
The company will buy, without debt, eight to nine larger dairy farms in the 600 to 1000 cow range, mainly in the South Island and already has a number of farms in mind.
After 18 months investors will be able to vote at the first annual general meeting on whether to become fully listed on the stock exchange.
PDI is offering 25 million shares at an issue price of $1/share, partly paid to $0.30/share with a minimum commitment of $20,000.
The company is to be chaired by Malcolm Bailey, Dairy Companies Association chairman and a Fonterra director. Bailey says PDI gives ordinary Kiwis an opportunity to invest in what New Zealand does best.
PDI will be managed in partnership with MyFarm led by Andrew Watters and Grant Rowan, directors in MyFarm, with professional directors Neil Craig and Brian Cloughley.
"We intend to use the regular monthly milk payments from Fonterra or other dairy companies we supply milk to, to pay quarterly dividend payments rather than paying interest on debt used for farm acquisitions," says Watters.
"We will be looking to only buy farms that are well priced, have a development angle, and the potential to be top quartile milk producers."
