The not-quite-so-small Victorian producer Dromana Estate issued a prospectus in December for an IPO and public float. This follows the acquisition of the Mornington Vineyards Estate, 49% of Yarra Valley Hills (subject to the success of the float) and the vineyard management business of National Vintages Ltd. With its founder Garry Crittenden remaining as managing director, the company expects to raise $3.6 million (3 million shares at $1.20 each) to construct a new centralised winery at Tuerong Park on the Mornington Peninsula, pay for the shares in Yarra Valley Hills and further develop its vineyard base. Given a successful float, the Wine Investment Fund will own 27.8% of the company’s notional market capitalisation value of $10.7 million, Garry Crittenden will own 12.3% through his company Zummer Pty Ltd, while interests associated with Hugh and Isabel Robinson, founders and beneficial owners of Mornington Vineyards, will own 6.6%. The prospectus offers an unusually realistic estimation of the cropping levels necessary to maintain and develop the brands of Dromana Estate, Mornington Vineyards and the Garry Crittenden ‘i’ range of Italian varietal wines, as the company’s total crush increases from an estimated 280 tonnes in 2001 to 618 in 2005. Despite the inclusion in the prospectus of remarks concerning the unlikely success of an Aboriginal heritage claim on the company’s major vineyard and future winery site at Tuerong Park, Dromana Estate Ltd should provide a very satisfactory home for the excess of wine venture capital presently clogging the corridors of Collins St.
