SLI Systems

[Banksie]

Another technology company planning to list:
http://www.stuff.co.nz/business/indu...nx-NZX-listing

Other than what is on their website I know very little about this company. Has it been on anyone else's radar?

[iced]

Not really much, but a start:

http://www.sli-systems.com/resources/coverage
http://www.stuff.co.nz/business/indu...in-SLI-Systems

[Banksie]

This may be a dumb question (but I am new to investing). How do you take part in the IPO?

Do I have to have an account with Craigs Investment Partners or Forsyth Barr (currently I use ASB Securities)?
Is it possible to take part in an IPO with a small stake or do all the big players snap up the offering?

[minimoke]

Go to Noel lemming or warehouse sites and you'll see the sli search feature.it's pretty good.
I'm not in. I put my money into the company not others pockets.

[Banksie]

I put my money into the company not others pockets.

That is one of my concerns - the fact that more than 40% of the IPO was going to existing shareholders. Why would they do that if they thought the company had great potential? My only thought was that maybe a $15 million only IPO was too small to make it worthwhile.

[CJ]

That is one of my concerns - the fact that more than 40% of the IPO was going to existing shareholders. Why would they do that if they thought the company had great potential? My only thought was that maybe a $15 million only IPO was too small to make it worthwhile.

It gives long term holders the opportunity to cash out - If they have been invested for 11 years, it has been a long wait!

It also increases liquidity. Just look at BurgerFuel where the founders hold over 80%.

What I would look to are who are getting out (founders or just the money men who helped them get this far) and if they are completely exiting or just a portion.

[percy]

I have asked Craigs for a prospectus.
I want to compare SLI Systems to estaronline which I have have shares in,and have done very well with.
Where a bricks and mortar retailer can grow sales by 2% pa, online retailers/merchants are growing sales by over 25%pa.
So if SLI Systems are very clever there will be plenty of growth for the company.

[Banksie]

Is one of the people selling down Sam Morgan? If so, how much is he selling down by?

http://www.stuff.co.nz/business/mark...-for-IT-leader

From the article it would appear that Sam Morgan is putting in another $1m. He is obviously confident in the company.

I can understand the founders cashing in some of their shares at this point - realising some return for years of work, but why would Pioneer Capital want to get out if it is a good investment?

[Anna Naum]

Pioneer is just doing what the funders of Summerset did, sell some on the IPO, then wait for the push higher to exit some more. In the Summerset case they sold about 30% at $1.40, look at it now!

[macduffy]

Correct, Anna.

That's what venture capital companies do!

I wish there were more of them.