Sharechat Logo

Wiggs extends Punakaiki Fund offer by 3 weeks as subscriptions lag minimum target

Wednesday 2nd October 2013

Text too small?

Internet commentator Lance Wiggs has extended his Punakaiki Fund offer by about three weeks and cut proposed management and directors' fees on signs the IPO would miss its minimum target of $5 million.

The offer, which had been due to close today, had sought to raise up to $50 million to invest in early stage New Zealand technology, internet and design companies. The fund had registered a prospectus for an initial public offering of $20 million of shares at $1 apiece with oversubscriptions for a further $30 million.

"It was a lot harder to raise the fund that we anticipated, and our timing versus the Meridian offer was unfortunate, with brokers essentially dedicated to that process for a substantial period, especially over the critical last two weeks," Wiggs said in a statement.

The government's sale of about 49 percent of Meridian Energy went on sale on Monday.

Wiggs said fees have been cut in the amended offer document after feedback that some investors "wanted to see lower fees in the case of a smaller raise."

The intended manager of Punakaiki, Lance Wiggs Capital Management, which is 66.7 percent owned by Wiggs and 33.3 percent owned by Chris Humphreys, will cut its minimum management fee to $150,000 from the $300,000 proposed in the original prospectus.

The initial aggregated director fees have been cut to $15,000 and 30,000 shares respectively, from $40,000 in cash and the issue of 80,000 shares.

The company's directors include Wiggs, former South Canterbury Finance chief executive Sandy Maier and former Bell Gully partner Wayne Hudson.

The fund is intended as a "capital gain pay" and won't pay dividends.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments
Bascand says RBNZ will consider changing bank capital proposals
Affordable electricity key to decarbonisation - Genesis
Graeme Hart trims global packaging empire with US$615m asset sale

IRG See IRG research reports