Salvus finally makes it to market
Salvus Strategic Investments Limited made its debut on the NZSX today having raised a total of $20.1 million.
Friday, July 9th 2004, 6:26AM
For every $1 share purchased in the IPO, shareholders also received one option to buy an additional share at $1 in March 2007 or 2008. The shares closed yesterday at 90c and the warrants at 14c, giving investors a 4% gain.Salvus raised $20.1 million when it was aiming for $25 million plus another $25 million of over-subscriptions.
The company has a large, as yet unidentified, institutional shareholder base with an estimated 36% of shares outstanding held by institutions in New Zealand and the United Kingdom.
"This is unusual feature for a listed investment company," Salvus Asset Management managing director Andrew Couch says.
Salvus will invest in a diversified portfolio of both listed and unlisted small New Zealand companies. Having already done extensive due diligence, the company expects to begin making investments shortly.
Director Roger Armstrong says the the successful listing is a "phenomenal achievement" as the team at Salvus were unknown in New Zealand before the process began.
Couch says Salvus expects to undergo rapid development over the next years.
"The closed-end structure will enable Salvus to become a long-term and supportive shareholder to New Zealand small companies. In addition, we intend to encourage high standards of corporate governance and contribute to the general debate on this important subject.
Meanwhile fellow investment trust Kingfish says the unaudited net asset value currently stands at $1.0273 a share.
The diluted net asset value describes the effect of all option holders exercising their options when the share price is over the strike price of $1.00.
Kingfish raised about $60 million for a similar listed investment company earlier this year. Its shares finished at 89c yesterday and the warrants at 15c.
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