Strong Investor Demand For Teamtalk IPO, Company To List On NZSX Tomorrow
New Zealand’s leading mobile radio communications company TeamTalk today announced its $8 million Initial Public
Offering had closed fully subscribed.
Neil Paviour-Smith, Managing Director of the lead manager and organising broker to the offer, Forsyth Barr Limited,
reported investor demand was substantially in excess of the offer size.
“Demand for shares in this offer was very strong reflecting the Company’s unique market position, the quality and depth
of its client base and its strong cash flow generating ability,” said Mr Paviour-Smith.
The company will list on the NZSX tomorrow morning.
TeamTalk raised a total of $6 million of new equity and existing shareholders sold $2 million of equity. A total of
4,571,428 shares were offered at NZ$1.75 per share.
“This is an excellent outcome for TeamTalk and we are very happy to have received such strong investor support for this
issue,” said TeamTalk’s Chairman Joe Pope.
“The degree of investor demand is a reflection of the quality of TeamTalk’s current business and the company’s future
potential. We are proud to welcome the new shareholders into our company and look forward to sharing our successes with
them.”
Approximately 820 New Zealand private investors participated in the IPO with institutions also expressing interest. They
join TeamTalk’s current shareholders, who include Active Equities and TeamTalk management.
$4 million of the offer proceeds will be used to repay bank debt with the remainder used for general operational
purposes.
“TeamTalk has developed a two-pronged growth strategy – enlarging our core business by adding value to existing products
and services, and expanding primarily through acquisition into allied business areas.
“The successful outcome of the IPO ensures we are well-funded and positioned for the implementation of this strategy,”
said Mr Pope.