Derek Handley's Snakk soars 300% on NZAX debut
TOP RIGHT: Derek Handley at this morning's launch as Sir Richard Branson makes a video appearance. Mr Handley and Sir Richard are both members of "The B Team, a non-profit group under the Virgin Unite initiative that aims to promote business' role in solutions to environmental and social problems.
MIDDLE RIGHT: Snakk executives at today's launch, L-R: co-founders Derek Handley and Andrew Jacobs, technology and partners manager Max Flanigan and executive director Mark Ryan.
The first listing on the NZX this year is also likely to be the smallest.
Snakk Media [NZX:SNK] joined the alternative market exchange this morning.
The company has 2000 shareholders with 206.6 million shares at 6.5c on issue.
Within minutes, three trades had pushed the price to 12c, valuing the company at $24.8 million [UPDATE: shares closed up 346% at 22.5c].
Snakk posted a 48% gain in sales to $1.22 million in the six months ended Sept. 30. The company made a net loss of $610,000 in the year ended March 31 last year on sales of $1.99 million.
Snakk is the latest vehicle of IT entrepreneur Derek Handley, founder of The Hyperfactory, which was later acquired by the Meredith Corporation of the US.
Like The Hyperfactory, Snakk is in the mobile media business, selling advertising on smartphones and tablets.
The business is based in Sydney.
Mr Handley expects this area of the media will have sales of $200 million in two to four years.
The market launch was accompanied by an iPhone video message of support from Mr Handley's "personal friend," Sir Richard Branson, who appeared to be at his West Indies holiday home.
NZX chief executive Tim Bennett says he expects it to be a "terrific year" for the capital markets with many other listings on the way, including Mighty River Power.
He told NBR ONLINE these will all be major stocks. He says Snakk fulfils the NZX's goal of listing businesses that have strong entrepreneurial and growth characteristics as well as global ambitions.
Snakk listed under a share purchase plan (SPP), which allows companies to join the exchange without the costs of an IPO or a prospectus.
That means a forthcoming capital raising will only be available to existing shareholders.
Apart from Mr Handley, the Snakk board comprises JUCY founder Tim Alpe and Michelle Kong, strategy manager at Telecom.
The company plans to raise new capital through a share purchase plan some time between April and June