G3 Group

[noodles]

A new thread for a new listing g3 group

Good description in NZ herald link
http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11440028

No capital to be raised.

Lists on 18/6

[Harvey Specter]

http://www.nbr.co.nz/article/nxt-launch-compliance-listing-private-mail-firm-g3-b-174069

As a very wise poster on the NBR said:


Does anyone foresee liquidity issues here? All shares owned by two trusts associated with insiders. Therefore the only way to buy shares is for insiders to sell which is normally a bad sign.
It would be good to know how much they intend to sell and how they are going to manage the liqudity/negative signaling issues.


More info: http://www.g3group.co.nz/about-g3.html

'Priced' at 11.5 times EBITDA which doesn't look to bad considering they are growing at ~20%. Note that given there are no shares being offered, and no recent capital raises/share transfers to benchmark off, the listing price of 75c is only a suggestion.

[sammiesmiles]

I am wondering how the model work. I do want to invest some. I am confident with their chairman Campbell since i have made gain from investing THL and SUM.

[noodles]

I am wondering how the model work. I do want to invest some. I am confident with their chairman Campbell since i have made gain from investing THL and SUM.

I will be waiting till Chairman Campbell actually buys some.

It is worth noting that this is a dying industry. I'm surprised it is being priced as a growth stock!

[sammiesmiles]

I will be waiting till Chairman Campbell actually buys some.

It is worth noting that this is a dying industry. I'm surprised it is being priced as a growth stock!

Good idea, Let's pay attention to what Campbell does ;)

[Harvey Specter]

So who is going to put in a bid.

Remember if you buy, it is the founders selling out - not a good sign. It will be interesting to see if there is a planned change of ownership with others (including the chairman) buying of the founders at open at the suggested market price of 75c.

Edit: this from the edison reports suggests that this has already been done, but it isnt showing on the companies office site:


The last acquisition transaction and the issue ofshares to the non-executive directors and seniorexecutives was struck at NZ$0.75 per share implyinga market capitalisation of ~NZ$40m.

Edit 2:


ShareholdersUnder the NXT market rules as a way of increasing liquidity in the market place, the co-foundersEvan Christian and Jason Butler have agreed to lend 100,000 shares each to the market maker.The co-founders control 82.3% of the shares and management and the board hold a further 13.4%.
Exhibit 13: G3 Group – shareholders
Evan Christian Director 39.06%
Jason Butler Director 38.88%
Mark Brightwell CEO 6.97%
Rob Campbell Chairman 2.47%
Rob Alker COO 2.47%
Stephen Phillips Director 0.62%
Other shareholders 9.53%
Total 100.00%