NZ Finance - Building an Empire

[rmbbrave]

I have ordered 10000 shares. Whether I will get them is a different matter

[k1w1]

Brave,if you get them thats not a positive sign. If you don't get them thats not all that positive either.

I always wonder with these ones with the deliberately constricted supply - unless I got a big allocation thru connections

[badger]

K1w1...get yourself some stock ..closing this week altough you might have to employ the ' many smaller apllications technique' to avoid being scaled.

[rmbbrave]

NZ Finance has started trading.

The shares cost 30 cents and they are now at 36 cents.

A tidy profit if you were able to get some. I don't whether I got any or not yet. However the money I allocated for these shares has left my account.

[rmbbrave]

What do you mean "tiny volume"?

There have been 229000 traded before 12:30. That is more than most of NZ's biggest companies.

[rmbbrave]

I have come up with a theory as to what "tiny volume" may mean.

Are you trying to say that most of the punters who got NZF shares before the IPO haven't flogged them off on the first day of listing for a quick profit and that that is unusual as far as IPOs are concerned?

Please correct me if I am wrong.

[rmbbrave]

Strong show for NZ Finance

07.10.2004 By ELLEN READ

New Zealand Finance has made a strong start to life as a listed company, rising four cents to 34c a share on its stock exchange debut.

After hitting 37c, the stock closed last night at 35c a share, giving the company a market capitalisation of just over $24 million.

Most of the financial services company's loans are short-term bridging loans to the residential property market. It also has a mortgage-broking business, NZ Mortgage Finance.

Managing director John Callaghan was "very pleasantly surprised" at the strong start to public trading.

He said there had been a good response to the offer, resulting in heavy scaling - including for company directors.

NZ Finance offered 5.5 million new shares and 4.3 million existing shares to the public, at 30 cents a share.

Established in 1997, the company remains majority-owned by directors Callaghan, Mark Thornton and Pat O'Connor. The share issue means new investors hold just under 15 per cent of the company. The total number of shares on issue is just over 69 million.

The company has a loan book of around $40 million, assets of just over $5 million and made a net profit of $3.5 million in the year to March 31. It will unveil its interim result at the end of the month.

The finance sector has been in favour recently, with a booming housing market and low interest rates.

Mortgage-broking franchise company Mike Pero raised $10 million and listed on the stock exchange in May. In July, Dominion Finance followed suit after a successful $15 million capital raising.

[rmbbrave]

NZ Finance closed at 40 cents today. That is 33% profit in 2 weeks for those who were lucky enough to get some shares in the IPO.

[blackcap]

quote:Originally posted by rmbbrave

NZ Finance closed at 40 cents today. That is 33% profit in 2 weeks for those who were lucky enough to get some shares in the IPO.

Yep managed to get the mandatory 5000 in the IPO but unfortunately had sold out at 36. Still looks like this baby could go on a bit.
Reasonably illiquid if founders not looking to sell and some unsatisfied demand out there.

[mikescott]

It will get high enough soon for the suckers to be attracted in.

Think Strathmore.