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

 


Martin Aircraft taps investors for $5M ahead of planned IPO

Martin Aircraft taps investors for $5M ahead of plans to raise as much as $20M in IPO

By Suze Metherell

Aug. 8 (BusinessDesk) - Martin Aircraft Co, which plans to make the world's first commercial jetpack, has so far raised half of its $5 million target by selling shares to investors ahead of plans to raise as much as $20 million in an initial public offering as part of a listing on the Australian stock exchange mooted for later this year.

The Christchurch-based company has tapped "sophisticated investors" for capital, saying it will spend $2.1 million on research and development, $1.2 million on salaries and IPO costs, $701,500 on marketing and $985,000 on production of five showcase jetpacks, the offer documents show. It also flags plans for a $15 million to $20 million Australian listing in late 2014 or early 2015 to further scale up its production.

As at July 1, the company had raised $2.5 million in its pre-IPO, with a minimum investment at $49,500, representing 165,000 shares at 30 cents apiece. Currently Martin Aircraft's largest shareholder is No.8 Ventures, backed by investing doyen and the company's chair Jenny Morel, at 31 percent, while founder Glenn Martin holds 28 percent. The company said it completed a 10 for 1 share split to reduce the pre-IPO price to 30 cents.

In the year ended March 31, 2013, the company reported a loss of $1.76 million, on $5,206 of sales and $27,113 in other income, including New Zealand government grants, the offer documents show.

Martin Aircraft hired Sydney-based Axstra Capital to manage the capital raise, advise on an IPO and help spruik to wouldbe shareholders here and across the Tasman. The company is touting 40-pre orders for jetpacks representing $6 million in sales, with a further potential $20 million worth of serious interest. The jetpack can fly for 30 minutes with a 30 kilometer range at speeds of up to 74 km/hour, compared to its nearest competitor with only 30 seconds of flight.

The company wants to target the light helicopter market, dividing potential customers between government, for surveillance and remote operations uses, first responder, for emergency, security and rescue uses,and recreational, for tourism and flight school uses.

The company claims over 100,000 enquiries on its jetpacks, and says it has $42.9 million of potential pipeline orders, including serious enquiries from a Mexican government agency worth up to $14.6 million, as well as from the United Arab Emirates and South Africa governments, private companies in Australia, Canada, the US and Jordan, and non-civil interest from Thailand, Qatar and Egypt.

A Russian commercial security firm, a Brazilian fire department and a Kuwaiti medical customer have also made serious enquiries.

It has appointed Norton Rose Fullbright as legal advisors to the IPO, Bell Gully Lawyers as New Zealand legal advisors, and PwC as investigating accountants.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news