IT Brief New Zealand - Technology news for CIOs & IT decision-makers
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SLI Systems launches IPO
Wed, 15th May 2013
FYI, this story is more than a year old

‘Software as a Service’ (SaaS) website search company SLI Systems is to offer New Zealanders the opportunity to share in the rapid growth of online commerce.

The Christchurch-based company has revealed it will proceed with an Initial Public Offering (IPO) of shares to raise NZ$27 million, consisting of NZ$15 million of new capital and NZ$12 million to be paid to existing investors realising some of their investment in the business.

SLI Systems has registered a prospectus, and approved an investment statement, in relation to the IPO, which can be viewed at:

The offer price has been set at NZ$1.50 per share following a book build to institutional investors and NZX Firms, with this final price giving SLI an implied market capitalisation following the IPO of approximately NZ$87 million.

The offer has received strong support from brokers and widespread institutional investor support according to the company.

Investor demand has exceeded the NZ$27 million offer by 147% (approximately 2.5 times the money sought) at the book build clearing price, as a result applications have been scaled accordingly and there will be no public pool.

"We are delighted with the extremely positive response from New Zealand brokers and institutions, with nine new institutions joining our register," says Greg Cross, chairman, SLI Systems.

"It shows New Zealand investors are willing to support innovative New Zealand companies on the world stage.”

As part of the IPO, interests associated with Trade Me founder and technology entrepreneur Sam Morgan will invest an additional NZ$1 million at the IPO price.

Morgan’s family trust made an investment of NZ$1 million in SLI Systems in 2012.

“SLI has already established itself internationally, with a strong presence in the United States, the UK, and Australia," says Shaun Ryan, CEO and co-founder, SLI Systems.

“There is global demand for our services due to the fantastic value they offer to customers.

"We have a strong board and executive management team, a strong and sustainable revenue stream and substantial future growth prospects.”

In the year to 30 June 2012 SLI had Annual Recurring Revenue from its existing customer base of NZ$15.5 million and the company anticipates that figure will rise to NZ$19.2 million in the year to the end of June 2013 and to NZ$25.9 million in June 2014 (compound annual growth of 24% and 35% per annum respectively).

Due to the investment in initiatives intended to generate future growth, SLI intends to make losses in the near term.

“SLI’s continued strong growth will follow from the investment of the IPO proceeds into additional sales and marketing initiatives in existing markets, expansion into promising new markets and enhancements to SLI’s product range," Ryan says.

“SLI is looking forward to a bright future as an NZX-listed company."

The offer will open on 14 May 2013 and will close on 28 May 2013 with quotation and trading of shares expected to commence on the NZX Main Board on 31 May 2013.

Prospective investors can contact either of the Joint Lead Managers, Craigs Investment Partners or Forsyth Barr, or any NZX firm for further information.