Soft debut for the unlisted Intaz

By Chris Hutching

Friday 3rd May 2002

The share price of the latest unlisted float, Intaz, eased to 95c yesterday on a handful of trades worth under $4000.

The shares listed at 98c before drifting back to 95c - the same price offered in the prospectus to early-bird investors who subscribed for shares before March 8.

They were also granted options on a 1:3 basis exercisable at $1 in 12 months.

Intaz went to the market in March for $10 million but raised just $5.3 million, sufficient to proceed with its planned sales programme in New Zealand and Australia while deferring a roll out in the UK.

Intaz raised $5.3 million and has allotted 5,478,753 new shares that trade as unlisted securities (under the code ITZ).

The company has developed a comprehensive health and safety software business and had high hopes for accelerating sales over the next three years.

It achieves direct sales in this country and also through intermediaries and clients such as IBM, Woolworths, Powerco, Heinz Wattie's, EnviroWaste, and RD1.

The UK operation had been forecast to produce a sales surge from $5.5 million in 2003 to $41.4 million in 2004 and $61.7 million in 2005.

More modest sales increases were forecast from New Zealand and Australia.

The bold prospectus forecasts predicted an after-tax loss ending March 2002 of $4.9 million reducing to a $2.8 million loss next year before rising to a $8.8 million profit in 2004 and $14.1 million in 2005.

Brokers and financial planners rated Intaz as a venture capital stock and also noted the share options granted to 22 related parties and directors, and the senior executive share option scheme allowing directors each year to issue options annually equivalent to 5% of the total number of shares on issue.

Founding shareholders hold about two-thirds of the company's capital.

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