Software as a Service) company SLI Systems Limited has completed its $27 million initial public offering (IPO) and has started trading its shares on the NZX Main Board.
The Christchurch-based company has raised $15 million of new capital and $12 million to be paid to existing investors realising some of their investment in SLI.
SLI Systems says it has received strong support from brokers and institutional investor demand at the offer price of $1.50 a share. Investor demand exceeded the $27 million offer by 147 percent (approximately 2.5 times the money sought) at the book build clearing price. Applications were scaled accordingly.
Some 620 new shareholders have joined the SLI Systems share register taking the total to 643.
“We are delighted with the level of support from New Zealand investors and the confidence they have in our future," says SLI Systems chairman Greg Cross. “The IPO and our listing on the NZX today has raised our profile among New Zealand investors and deepened the understanding of our business. We anticipate substantial interest in our performance and strategy from our new shareholders and potential investors as we go forward into this next stage of our evolution," he adds.
“The completion of the IPO allows SLI to start on a new chapter in its development. There is global demand for our services due to the fantastic value they offer to customers. The new capital - to be invested into additional sales and marketing initiatives in existing markets, expansion into promising new markets and enhancements to the product range - will assist SLI Systems to become a significant New Zealand company and a global success story. We're looking forward to reporting progress when we deliver our business results for the 2013 financial year in August," says the company's CEO and co-founder Shaun Ryan.
Craigs Investment Partners and Forsyth Barr were Joint Lead Managers for the IPO.