Fliway Group shares have fallen 2.6 percent in early trading on the NZX, after the transport and logistics company's $34 million initial public offering, marking the first listing on the bourse for 2015.

The stock first traded at $1.22, before falling back to $1.17, or 3 cents below its offer price, and valuing the company at $45 million. Existing shareholders Duncan and Gretchen Hawkesby will retain 54 percent of the South Auckland-based company, after selling 20.9 million shares, fewer than the 23.5 million originally planned, to net $25 million.

"A disappointing start on the market this morning - it did have its head above water initially but that didn't last very long," said Grant Williamson, director at Hamilton Hindin Greene. "There's not a lot of demand for the shares post listing this morning."

"A number of investors will be long term in this and looking to the financial performance of the company going forward," he said. "Other investors who were more likely to stag the stock will obviously be disappointed and could very well be the ones doing the selling."

A further 7.5 million of new shares were sold to raise $9 million in new capital, of which $6.5 million will be used to reduce the company's debt to $12.5 million, according to the prospectus.

"With IPOs investors much prefer to see money staying in the company for expansion or debt reduction, but in this case the vendors took a good chunk of that," Williamson said. "They are still major shareholders in the business."

The company's primary activities are transporting and warehousing freight throughout New Zealand and co-ordinating freight movements internationally, including customs clearance. It has 450 staff, 170 vehicles in its fleet, 11 branches and five warehouses around New Zealand.

Hawkesby will remain managing director of the company, which is forecast to have revenue of $85 million and net profit of $4.5 million in calendar 2015. The company expects to pay a dividend this financial year, amounting to between 50 percent and 70 percent of net profit, for a yield of or about 7.8 percent.

"There is some attractive aspects to Fliway and obviously a dividend forecast is one of them," Williamson said. "Investors do like to see some runs on the board, and the company and the company's management do need to gain the market's confidence with these smaller type companies."

Craig Stobo is chairman of the company while Alan Isaac has been appointed as independent director.