NZ companies also tend to try to get by on peanuts. Look at IPO's in the states for the Solar industry. They go to market and ask for $500mill US. Here we have WDT trying to do it on less than $40 Mill over 10 years. Its crazy. Its also part of the reason that so many companies fail. They do not get capitalized enough at the start and spend the next 4 years trying to raise more cash through capital raising that hurt the initial shareholders.
Hopefully that fact that the Jetpack already has a $12mill production deal and hopefully can develop a drone style Jet Pack for military S&R. That could give it a nice base for sales means $20 Mil might be enough But I would ask for $40mill and then settle for less if the full amount was not raised. I am sure there would be ways to structure the IPO so that any unsold shares are held in reserve to be issued later if possible or have an extra pot of shares above the 20mill if over subscribed.
One thing I have noticed is that most NZ IPO's always need twice as much as they ask for.
I am still keen as I think it has real potential.
Bookmarks