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

 


IPO path to NZX for tech companies


26 September 2012

IPO path to NZX for tech companies

The New Zealand Venture Investment Fund wants to see 15 to 20 high growth companies in its portfolio listing on the New Zealand stock exchange over the next decade.

Currently NZVIF has 125 portfolio companies and expects that to grow to around 180 over the next five years. It aims to see 10 percent of those companies listing on the NZX.

NZVIF chief executive Franceska Banga said that establishing a path for technology companies, which can take them from receiving initial investment at the start-up stage, through to expansion and on to listing on the NZX, will assist the development of the growth company eco-system.

“A number of high growth companies have taken the option of an early presence on the NZX, such as Xero. But for many technology companies, a public listing follows a period of development and growth funded from rounds of angel and venture capital investment. New Zealand’s capital markets will be stronger if there is a viable path from that type of private investment through to public markets.

“A major challenge for growth companies is the lack of follow-on investment capital when they need $5 million to $10 million. For many companies, strategic acquisitions by large international competitors are the preferred way to fund their next stage of development and that will remain the case. But we need to develop the domestic IPO market as a practical and viable alternative.
“So far, just two NZVIF portfolio companies have a presence on the NZX – Xero and HTS-100 via its acquisition by Scott Technology. A third - Moa Brewing Company – has indicated interest in a possible listing to raise new capital. NZVIF’s goal is to increase that presence. Within five years, we expect to have invested into around 180 companies and our aim is that around 10 percent – 15 to 20 companies – will, over time, list on the NZX.

“For that to happen, we need to work with the investment and brokering community on building the pipeline of prospective listings and map a path forward from early stage private investment to NZX listings.

“If this can achieved, the NZX will benefit from a deeper, broader offering to investors from more high growth technology companies being listed. Secondly, establishing a viable path to the listed market will open up new deeper pools of capital for companies to develop, while providing early stage private investors with another path to realise value from their investments, which would be reinvested, strengthening the early stage eco-system.”
ends


Ruth Malo
Administration Manager | DDI: 09 951 0170 | Mob: 021 714 277 | Email: ruth.malo@nzvif.co.nz
New Zealand Venture Investment Fund Limited
Unit 1B, Ascot Office Park, 93-95 Ascot Avenue, Greenlane, Auckland
PO Box 74211, Greenlane, Auckland 1546
Tel: 09 951 0170 | Fax: 09 951 0171 | Web: www.nzvif.co.nz

A cornerstone investor in a vibrant early stage venture capital market
This e-mail message, together with any attachments, is for the intended recipient only and may not be disclosed to any other person. If you are not the intended recipient and you have received or seen this message through an error, please notify the sender immediately and delete the email from your system. Unauthorised use or disclosure of the message, or the information it contains, may be unlawful.
New Zealand Venture Investment Fund Ltd (NZVIF) accepts no responsibility for changes made to this email or to any attachments after transmission from NZVIF. The information contained in this email, together with any attachments, does not necessarily represent the official view of NZVIF. It is your responsibility to check this email and any attachments for viruses.
P PLEASE CONSIDER OUR ENVIRONMENT BEFORE PRINTING THIS EMAIL.


Picture (Device Independent Bitmap) 1.jpg

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news