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Thread: RAK Rakon

  1. #11
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    Investors fired up over Rakon

    13.04.06
    By Richard Inder


    Demand for shares in Rakon, the maker of the world's smallest GPS receiver, are reportedly bettering the expectations of the Auckland-based company's bankers.

    The company, founded by engineer Warren Robinson, in a Howick basement in 1967, will shortly offer shares to investors at $1.60 apiece.

    This price is substantially higher than the $1.10 to $1.40 indicative range the shares were first offered to investors and a later upwardly revised range of $1.20 to $1.50 a share.

    Rakon and adviser UBS arrived at this figure after brokers said they could sell a substantial volume of shares at this price.

    Rakon is today due to register the prospectus for its initial public offering of around $67 million and $70 million worth of shares. About 40 per cent of the shares will be placed with New Zealand investors.

    Investors are looking at the potential for the company's chips to be used in the 500 million to 600 million mobile phones and the 70 million to 80 million cars manufactured each year.

    Between 42.1 million and 44.1 million shares will be offered to the public. As much as 20 per cent of these will be new shares, raising as much as $14.5 million.

    This new cash will be used to expand the company's sales and marketing presence and production capacity at its Mt Wellington headquarters. As many as 30 new jobs could be created at Rakon's headquarters in Mt Wellington, where it employs 500 people.

    Some potential investors are disappointed more shares are not available. But, it is thought the company, led by Robinson's sons Brent and Darren wants to establish Rakon's fair value before more new investors are brought on to the register.

    On listing, the company is expected to have a market value of around $170 million, well ahead of its initial expectations disclosed by the Business Herald in January of about $147 million.

    The price is also despite a cut in its forecast trading profits for this year and next. Last year, when the company mooted a public offer, it had forecast trading profits of about $14 million in the past March year and $20 million next year. It now expects $11.4 million this year and $15.5 million next.

    The reasons for the cut are unclear, but they may reflect a more conservative approach to forecasts ahead of the public float. Annual net profits are expected to rise from around $4.4 million to $7.2 million.

    The family last year sold a 20 per cent share in the business to Peter Maire, founder and chairman of navigation technology specialist Navman.

    He then said Rakon was New Zealand's "only real technology company".

    "If you talk about real, state-of-the- art technology on a global scale, they're a market leader.

    "They beat all of the major Japanese competitors hands down."
    \"The overweening conceit which the greater part of men have of their own abilities [and] their absurd presumption in their own good fortune.\" - <b>Adam Smith</b> - <i>The Wealth of Nations</i>

    The information you have is not the information you want.
    The information you want is not the information you need.
    The information you need is not the information you can obtain.
    The informaton you can obtain costs more than you want to pay.

  2. #12
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    this kind of stock feeds on itself.
    “If you're worried about falling off the bike, you’d never get on.”

  3. #13
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    Their VCXO business is coming to an end. There are lot of Asian companies manufacture VCXO’s. TCXO business is doing fairly well. They sell most of the reference TCXO’s for all the major gps chip sets.

    People like Motorola buy from them due to high reliability. I am not sure if their sine wave point matching custom IC based solution is used by other manufactures.

    The New GPS receiver is very smart move for them from traditional oscillator markets. I have ordered some samples and waiting to evaluate them. I think they have a good head start before everyone in Asia catches up to them.

    Any one know dates for the IPO?

  4. #14
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    First range was $1.10-1.40, second was $1.40-$1.50, now they're saying $1.60!

    Seems like someones getting a little greedy.

  5. #15
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    quote:Originally posted by Nevl

    there was a bit of talk last month about Rakon looking to do an IPO or raise some funds. Has anyone heard any news?
    This could be a great company and the family have done a brillant job in establishing global leadership in a hi tech industry. Would be great to sell them list on the NZX but will probally end up doing a Navman and selling to a big offshore company. I hope not anyway.


  6. #16
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    Does anyone have a link for the prospectus?
    Or are there only hard copies out there?

  7. #17
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    Rakon bullish on GPS sales

    19.04.06
    By Richard Inder


    Rakon, the shortly-to-be-floated maker of the world's smallest GPS receiver, is expecting its sales next year to increase by almost a quarter as its technology is adopted by makers of cars and mobile phones.

    The figures, detailed in the prospectus for the company's $66 million share offer which opened yesterday, show sales growing from $73.3 million in the year to this March to $90.6 million next year. Over the same period it expects net profits to grow $4.4 million to $7.2 million.

    The forecasts reflect assumptions the directors reasonably expect to occur, compared to a less robust standard used in other recent float forecasts, which were based on possible outcomes but not the most probable outcome.

    Profits may rise higher still, since the forecasts were prepared using a New Zealand dollar conversion rate of US67c. Yesterday's close was US62.65c.

    The company makes around 37 per cent of its sales in North America.

    But investors should not expect to see the proceeds in shareholder payouts as Rakon has no plans to pay dividends.

    Rakon says: "Surplus funds will be retained in order to capitalise on immediate and future growth opportunities."

    The company was founded by Warren Robinson in a Howick basement in 1967. It started developing crystals for electrical applications and has since branched out into oscillators and GPS (global positioning system) receivers.

    It is now eyeing the potential for these technologies to be used in the 500-600 million mobile phones and the 70-80 million cars manufactured each year.

    Around 41.2 million shares in Rakon are to be offered to the public at $1.60 apiece. Of these, 35 million are being sold by the Robinson family trust, while another 6.25 million are also being put on the the market.

    After listing, the family trust will retain a 22.6 per cent stake. Warren's sons Brent (managing director) and Darren (marketing director) will have stakes of 9.3 per cent each.

    Peter Maire, founder of the GPS receiver company Navman, will retain a 15.6 per cent stake.

    The new shares will raise about $10 million to expand the company's sales and marketing presence and production capacity at its Mt Wellington headquarters. As many as 30 new jobs could be created there, where Rakon employs 500 people.

    The company for the first time is being less coy about its links to the military, splashing images of warplanes and soldiers over its prospectus. Last year talk that its products ended up in smart bombs used in Iraq sparked a media storm.

    Around 65 per cent of its sales come from its top 15 customers. US defence contractor Rockwell International is a key customer.

    Investor demand for the shares has so far been strong.

    This is reflected in the $1.60 share price, substantially higher than the $1.10 to $1.40 indicative range at which the shares were first offered to investors and a later revised range of $1.20 to $1.50 a share.

    On listing, the company will have a market value of around $170 million, well ahead of its initial expectations disclosed by the Business Herald in January of about $147 million.

    The float is expected to cost as much as $4.3 million.

    But Rakon will cover only $1 million of this charge, the rest covered by the vending shareholders. UBS is the chief beneficiary.

    RAKON TIMETABLE

    * Yesterday: Share offer opens
    * May 12: Offer closes
    * May 15: Shares allotted
    * May 16: Trading begins


    \"The overweening conceit which the greater part of men have of their own abilities [and] their absurd presumption in their own good fortune.\" - <b>Adam Smith</b> - <i>The Wealth of Nations</i>

    The information you have is not the information you want.
    The information you want is not the information you need.
    The information you need is not the information you can obtain.
    The informaton you can obtain costs more than you want to pay.

  8. #18
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    The offer will be targeted to institutional investors in New Zealand, Australia and elsewhere, and retail investors who will principally be clients of leading brokers in New Zealand.

    For more information please contact a NZX broker firm.

    http://www.rakon.com/whatsnew/displa...&template=news

    Regretfully due to unprecedented demand our allocation in the Initial Public Offer of Rakon Limited has now been filled.

    http://www.asbsecurities.co.nz/

    ASB has none left even before the offer opened. The share is going to sky rocket on opening day but it will be too difficult to be part of it.
    \"The overweening conceit which the greater part of men have of their own abilities [and] their absurd presumption in their own good fortune.\" - <b>Adam Smith</b> - <i>The Wealth of Nations</i>

    The information you have is not the information you want.
    The information you want is not the information you need.
    The information you need is not the information you can obtain.
    The informaton you can obtain costs more than you want to pay.

  9. #19
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    Well it has been being pumped by the brokers on TV the last couple days, so guess thats to be expected.
    Would have been nice to be on board at the start, but agree looks too tough now.
    Should have been more awake this month...


  10. #20
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    Damn that was quick

    So there is no way anyone can get in on it now?

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