Punakaiki Fund - potential IPO

[Snow Leopard]

Article says progressing towards a public offering, but not a stock market listing.

Best Wishes
Paper Tiger

[CJ]

Article says progressing (but not an IPO).

Or is it a IPO, just not on an exchange. Not sure on the exact definition of IPO.

It will be available to all investors, not just 'sophisticated investors' (like those that invested in Ross Management). It will be interesting to see how it will manage share sales or will you effectively be locked in.

I do wonder how it will fund follow up investments. Surely it wont be holding a large cash pile for 3-5 years as it waits to see if it should double down on the next Facebook.

[CJ]

My understand is it will be small offmarket investments. He will then use his skills and contacts to grow the company to the stage it can IPO or be taken over though he does refer to Buffet so not sure whether he intends to hold forever.

I see these two posts as an indication of what the fund will be investing in.
http://lancewiggs.com/2013/05/24/inv...-the-dot-syft/
http://lancewiggs.com/2013/06/19/on-...y-to-trade-me/

[CJ]

I am interested but one thing I will be looking for is how they will deal with follow on investments as noted above.

This new news that it isn't going to be listed on an exchange also raises more questions of liquidity so will also be looking to see how this is addressed.

I do like the idea of an early stage VC type investment as these are normally avaliable to small investors. It will be high risk so my investment will be minimal.

[Snow Leopard]

I will just wait for the prospectus, read it, maybe ask a few questions and then make up my mind.

But I would hope that they avoid anything listed, as we can go buy them ourselves and will want to know how I can sell out if necessary and the terms thereof.

Best Wishes
Paper Tiger

[percy]

Sounds like a potential disaster to me.
Unlisted company investing in start ups.
How do you value it?
How do they value their investments?Directors best guess!
Rangatira [unlisted market] has always traded weakly for these very reasons.
Some of the biggest fund management disasters overseas have been caused by directors' "valuations" of unsaleable unlisted companies.

[CJ]

Is your guys take that most of their investments will be off market stuff in very early stage companies (i.e. companies when they are still years away from a potential public listing)? or do you get the sense they will be investing mostly on market in the likes of XRO, SLI, DIL, heaven forbid SNK.....

I imagine their fund would work in the VC space: http://fundersandfounders.com/how-fu...itting-equity/

[Xerof]

Lack of liquidity, meaning you will take a bath if you need to sell with some urgency, plus lack of NZX compliance (which some will say doesn't count for much anyway!)

NZX compliance doesn't count for much.....

[Dej]

http://www.punakaikifund.co.nz/

Prospectus released.

[blackcap]

Just had a very quick skim read... gotta love the fee's... that is if you are a director or associated with the fund!