New Zealand's Pastoral Dairy Investments (PDI) is looking to raise $75 million, with a minimum of $25 million to be acquired through an initial public offering at $1 a share to invest in larger-than-average dairy farms, each with about 600-1000 cows, the New Zealand Herald reported.

The IPO is targeting relatively smaller investors with a minimum investment of $20,000.

PDI is also seeking co-investors, such as parents seeking new investments and institutions, which could contribute about $50 million.

PDI chairman Malcolm Bailey, who is also a director of dairy giant Fonterra, said most of the farms are likely to be in Canterbury and Southland and could cost about $8-10 million.

"At the moment if you want to invest in a dairy farm you either buy one in your own right ... and then there have been other syndicated opportunities but generally they've been pitched at the minimum 250,000 [dollars] or 500,000 level," Mr. Bailey said, noting 'ordinary New Zealanders' should see this as an opportunity, even as he pointed out it was not a short-term investment.

"We're promoting it at this point as an illiquid investment, meaning if you're going to put your capital in assume that it's going to be there for quite some time but we will try and bring liquidity along the way," he said. "If you're investing in a farm this isn't a six-month sort of play ... think in years."

Bailey will act as an independent director at PDI and not an investor, the Herald reported.

The initial public offering is open until April 20.