By Phil Boeyen, ShareChat Business News Editor
Saturday 1st July 2000
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With more than 8 million shares in Capstone Turbine Corporation, Fletcher Energy is the largest shareholder.
Capstone listed on the Nasdaq on Thursday and closed the day a shade under US$48, valuing the Fletcher holding at more than NZ$800M.
But the company says it is expecting some volatility in the Capstone price, and investors should be cautious.
Capstone Turbine Corporation is a Los Angeles based designer and manufacturer of micro-turbines.
Fletcher Energy made its first equity investment in Capstone in 1995, when it also secured the marketing rights to stationary applications outside the United States. The kiwi company recently sold those marketing rights back to Capstone and will receive US$11m from the proceeds of the IPO as final payment for the marketing rights.
Taking into account that payment, Fletcher Energy's communications director, Stephen Jones, says the company's net investment now stands at around US$5 million.
The company is restricted from selling its eight million plus shares for 12 months. FEG closed Friday up 25 cents at $6.95.
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