New Zealand venture capital firm IT Capital should be listed on the Australian Stock Exchange within the next two weeks.
Managing director David Seton says IT Capital is waiting for the final share-rights issue from the restructuring of the company - which enabled it to list on the New Zealand Stock Exchange - to be completed.
Seton says moving into the Australian market is logical, as the research and development structure is similar to New Zealand, as are the venture capital requirements. This will mean the company has access to a bigger market with more depth and can evaluate a wider range of investment opportunities, says Seton.
Seton says it also increases the company's exit strategy options into the Australia IPO (initial public offering) market. "Ultimately we're always looking to the potential for an exit from our investments. Wherever possible we're going to seek to give our existing shareholders a chance to participate in those IPOs."
The company's first investment has been in exo-net, an electronic commerce start-up established by PC Direct co-founder Maurice Bryham.
"If they wanted to do an IPO into the Australian/New Zealand market, we could give our IT Capital shareholders the right to take out shares in that IPO and it could be out of our entitlement to that IPO."
So, if IT Capital had 35% of exo-net, it might have the right to take out 35% of that IPO.
"We could pass that on to our shareholders, which will be good for IT Capital shareholders because often that's where a lot of money is made. Not only that but it's good for exo-net in that they would have a ready source of interested shareholders," says Bryham.