Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Rakon IPO closes over-subscribed; listing May 16

Rakon Limited confirms that its initial public offer of 41,250,000 ordinary shares, valued at $66 million, successfully closed today (Friday, 12 May 2006). The issue was many times oversubscribed.

Applicants participating in the IPO will be sent notices of allocation on Monday 15 May.

Rakon’s Managing Director, Brent Robinson, said “Rakon is extremely pleased with the level of interest in the IPO. More than 1,800 investors have applied for shares including a significant number of staff”.

On listing Rakon will have approximately 39% of its shares held by new institutional and retail investors and employees of Rakon, with the remaining 61% owned by shareholders that were on Rakon’s share register prior to listing.

The issue price of NZ$1.60 per share was set in line with demand from international and domestic institutions and domestic retail brokers. At $1.60 per share Rakon will have a market capitalisation of approximately $170 million.

Mr Robinson said proceeds from the IPO were intended to fund further growth through new product development, investment in new manufacturing equipment and factory expansion.

UBS New Zealand Limited acted as Lead Manager for the IPO, and Jonathan Oram, director capital markets, said the high level of interest in Rakon was a strong endorsement of the company, providing an opportunity for local investors to share in the growth of a home-grown technology company with a true global footprint. "Rakon’s IPO demonstrates that the New Zealand capital markets are capable of valuing high growth companies," he said.

Rakon designs and manufactures high performance crystals and oscillators and currently supplies to over half of all GPS products manufactured world-wide.

All GPS receivers use quartz crystals in the decoding of satellite positioning data by oscillating at very specific frequencies and Rakon was the first to develop temperature controlled crystal oscillators that were small, inexpensive and precise enough under the dynamic temperature changes that GPS systems experience.

Rakon’s shares are due to be quoted on NZSX under the issuer code “RAK” on Tuesday, 16 May 2006.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>