Tasman Capital IPO

[Yossarian]

Is any one investing in this??

See link at top left of screen or http://www.tasmancapital.co.nz/?referer=sharetrader

I think this is quite an intriguing and novel concept though it could be like flushing $500 down the proverbial.

They are only raising $300k - not sure how long that will sustain the founders/CEO etc!! But I guess it's a very simple business so costs should be low.

Seems to have been "conceptualised" by Widespread.

[Hoop]

3 individuals in an investment playground wanting to play with other peoples toys. no thanks!!

[Yossarian]

yes... also:
1. i'm not sure a shell co is worth $400k as guessed at in their prospectus! Seems very ambitious.
2. can there really be that much demand for "clean shells"?

Think I'll keep my $500 for now...

Still, an interesting idea.

[Albert]

I've had a good look at that too! I give it thumbs up for a couple of reasons.
1. I've always tried keeping away from any newbie listing the has come on the nzx through a backdoor listing.
2. I like the idea of having dibs on the first options of a new listing this way.
3. Widespread is also involved on the SH list. Which is a good sign in my JMO.
4. $500 is not much to have a punt on IMO. The wife last pair of shoes cost $600
5. Think it's worth a look at, clever idea IMHO.

[Lizard]

I thought it looked quite clever - more of a "shareholder raising" than a "capital raising". Of course there is a big risk they fail to get any takers, or fail to get them at the right price. Selecting only for "profitable" companies would seem to limit things a bit, even if I do applaud the sentiment.

The pay-off seems to be in terms of free shares issued with each listing. My question would be what value parcel would be issued? Is it correct to assume that they would have to issue a marketable parcel (is that $500 worth?). The example is given of a $20m company, with $200k shares issued to shareholders. Since there would be 5,000,000 shares on issue, proportional allocation would only give each shareholder shares worth 4cents per head share in Tas Cap, or $200 worth for those with the standard 5000 share parcel.

Might be a good return on $500 at the targetted two issues per year, but a little fiddly to hold all those tiny parcels.

On the positive side, it looked pretty upfront and honest, with nothing unbecoming in the small print that I could see.

[croesus]

Well I have sent my checque away, I can certainly think of a couple of local companys ( Hawkes Bay) That would be looking to list in the next few years........ if Tasman can organise a " clean walk up drive away everything sorted listing process" then I am sure there is a profitable niche for this....
Sure in monetary terms it is a small listing, but the aim is to get a spread of Shareholders... when companys list thru Tasman the original shareholders ( in Tasman) will get the right to uplift shares at the pre IPO value.....

Its easy to make cheap shots.. Yossarian... but then from my recollection of Joseph Hellers writing... his Yossarian which is where I presume you have gleaned your sharetrader name.. was also wracked with the fear the people were out to get him..

Hopefully you will take that as a friendly jibe, as no offense intended.... and as for Tasman, lets see how they go.... hopefully there is a healthy number of midsized companys looking to list.

I agree with Albert,... re Widespread... excellant that they are involved.... over the last couple of years WID have been my best performing stock by many Country miles.. to the extent I am now on any conservative measure, way overweighted.... and happy to be so.
Cheers Croesus
.....

[Snow Leopard]

This thread from last year is relevent to your discussion. Two shell companies that were listed last year.
VIS is now MFN - MFS New Zealand Limited a company which as far as I am aware as never been mentioned on ShareTrader before and
HSI which is now (drumroll).... HSI Holly Springs Investments Limited

If you have $500 to give away either
a) spend it on a nice weekend away with your partner
b) write a cheque payable to Paper Tiger and send it to.....

Note: all smilies used in this post came from sustainable resources.

[zyreon]

I think this is a great idea, basically you're paying a small fee to participate in bringing new companies to the market; while at the same time, as a shareholder, participating in the growth of Tasman.

If the NZX needs anything it's more companies, and I think this follows an interesting trend... a lot of the high quality larger end companies are disapearing thanks to private equity. The PE players tend to stick to the higher end of the market in terms of market cap so what's left is the smaller companies. And of course the smaller companies are the ones who over time tend to yield the higher returns. I think this IPO follows and accentuates that trend, and playing on the law of large numbers, the more small companies that get listed, the greater the chances one of them will be the next big company...

In any case I'm in, I'll pay $500 for a chance to get in on some interesting listings.

Also they mentioned in the prospectus that Tasman holders would get a chance to get in on any backdoor listing deal related rights issues/share purchase plans/option issuance etc. So that may solve the piddly holdings issue.

But yeah Thumbs up from me:
-interesting concept
-potential for growth of investment
-free shares in new listings
-investment opportunities
-low exposure

EDIT:
Disc: smallcaps.co.nz is involved in promotion of the IPO

[Yossarian]

hey croesus, i haven't even made my mind up yet! I do think it's a very interesting concept.

But I'm still struggling with the idea that a clean shell could be worth $400k or anything near that. Also not that keen on very small holdings in small (possibly illiquid) companies.

[777]

I notice that the IPO is advertised at the top of these pages.