Comments(4)

Comment by max at 11:54 pm on 2 August 2007

Very very revealing. Always wanted to know what it actually costs.
It would be interesting to see some comparative analysis of Xero vs. B.K. IPOs.





Comment by Averill at 2:13 pm on 3 August 2007

For comparison purposes, here is some info on the cost of Endace’s AIM listing (all figures from the admission document, and converted to NZD at 0.38):

Total IPO proceeds: $26.3m. Of which $21.1m was received by the company for the issue of new shares.

IPO costs: $3.2m. Of this $900k was broking costs, the rest was accounting, legal, marketng, exchange costs, etc.

Works out to 12% of the total proceeds. Note that only broking costs have a significant linkage to amount raised, so for a higher level of funds raised the overall cost as a percentage of the proceeds is likely to be lower.





Comment by Rod at 2:36 pm on 3 August 2007

Thanks Averill.

We were told to plan for 7-8% in NZ. As you would expect most issuers negotiate with suppliers that a significant portion of their fees are dependent on success so you do not need all of that cash up front.

I think that there is now a better case for angel and venture capital funding in NZ if we can do local listings.





Comment by Averill at 2:54 pm on 3 August 2007

Yes indeed. Another point that people often focus on when looking at a listing in NZ vs offshore is the valuation multiplier - but for company founders where the IPO is not likely to be the true exit then the multiplier on listing is not that important.





Name:(required) Email address (required, will not be published): URL (optional): Comment:

Notify me of followup comments via e-mail