Strong demand for Moa shares sees public pool closed early
Demand for shares in Moa Group is too great, forcing the soon-to-list craft beer brewer to close applications for the $1 million public share pool a week early.
The additional general public pool for investors who did not pre-register closed at 5pm today after a significant oversubscription in applications.
But investors who pre-registered on the ownabrewery.co.nz website can still make an application up until 5pm on November 8.
Moa is seeking to raise $15 million in an IPO, offering investors the chance to buy shares at $1.25 each.
Oversubscriptions of up to $1 million are also being offered.
But because applications to the public pool have substantially exceeded available shares, considerable scaling will need to be applied, Moa says in a statement this afternoon.
Priority will be given to applicants who pre-registered for the offer.
“Unfortunately, those who have applied under the public pool and did not pre-register are unlikely to receive an allocation of stock in the IPO and will be refunded in full following settlement of the offer.
"The Moa team looks forward to the future support of these investors upon listing,” the statement says.
Moa chief executive Geoff Ross says he is delighted with the support for the offer from brokers, institutions and the broader public.
“Unfortunately, we simply can't satisfy all applications, but do hope these people will join post listing and continue to enjoy the Moa range of beers.”
Moa is expected to have a market capitalization of about $38 million upon conclusion of the IPO next Friday.
Trading of shares is expected to start on the NZX main-board on November 13.
At the time of the offer, Mr Ross said the company's controversial Prospectus was targeted the 30 to 50 year-old, high income men that Moa seeks as both customers and investors as it pushes to create an identifiably New Zealand brand in the fast-growing boutique beer market, especially the US.
"It is somewhat Mad Men," he said, appealing to "men who want moments of manhood."
The investment statement's advertising and questionable photographs of women in school-girl uniforms raised eyebrows, but got the all-clear from the Financial Markets Authority.
With reporting by Business Desk
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Comments and questions17
The lack of negative comments (unlike previous Moa stories) is deafening. Oh that's right, all those commentators (salaried office workers that work 9 to 5 for telcos/banks) have gone home.
Nice work Moa, obvious some people think you will succeed. Good luck, don't listen to negative trolls that have never started their own businesses.
Madness.
Congratulations to Ross and the Moa team.
Hopefully it will encourage more small NZ growth companies to list.
This ones not for me though. Its only unique selling point is the marketing team, otherwise it is just the same as all the other craft beers.
So, if you're not going to invest, why are you offering your congratulations? I simply don't understand why a small craft brewery that has never made a profit needs $15m. A small unprofitable company is not suddenIy going to become profitable just because it has $15m of other people's money in its bank account. Where's the product demand? I don't see loads of people filling their trolleys with Moa beer and I doubt many have ever heard of it. Do we really need yet another beer alongside all the other beers and wines competing for our dollar? Why isn't it concentrating on becoming profitable and growing organically by using its own earnings? Most craft breweries stay small and private and, if possible, profitable. Why are these guys so desperate to share the business with a whole bunch of strangers and become bound by all the conditions and duties that come with being a publicly listed company? Doesn't sound right at all. There's barely anyone alive in NZ who has experienced a true economic depression and daily headlines and general consumer behaviour show that NZ is yet to experience the events affecting Europe and the US. My bet is that homebrew kits will become increasingly popular at the expense of all the overpriced (and taxed) brand name beers for sale in your local supermarkets.
"So, if you're not going to invest, why are you offering your congratulations?"
Did you not read my second sentence. His success should be seen as positive for future IPO's.
Absolute suckers - this will be down 40% within 6 months.
Astonishing - well done for getting it away though.
Further evidence the NZ investment community have no concept of valuations.... incredible really...
40% done?? Sell those...
I like the Moa product. I still don't like the shed 5 analogy. The biggest reason i'm not buying right now is down to Ben Graham and what he states in the Intelligent Investor...I do like the product though. hic
Anything that relies on 'mum & dad' investors is a dog that has already been rejected by the institutions.
Common sense would dictate it is much easier to sell to 5 or so large institutions than deal with 100,000 morons.
Or maybe this will be another Charlies story. It was also predominantly Mum and Dad and I bought on the assumption that it would eventually be taken over. This is another that I would consider.
Wow - you are giving insittutions a lot more credit than they deserve given their constant underperformance. "Rejected by institutions" normally means it will perform over time and then the insitutions jump on board late in game once decent profits have been earned - aka Diligent and Xero to name just two.
I threw a few grand at Moa simply because of track record. I couldnt make the valuation stack (and no doubt using similar valuation methods as the insitututions. Will probably buy more if it is below the issue price. You cant guarantee that this will follow the same price path as 42Below and Ecoya which listed and then traded at a massive discount, because Forbar and Craigs (Lead Managers) have a lot of ability to support the issue. Hence my hedge.
Key words: considerable scaling.
There is more demand than supply, hence the price of shares will go up. It's economics.
you have to admire the man - he has sussed out the Psychy of the typical Kiw punter - gullible, gullible, gullible. When will we learn? My admiration for the man is outdone by my desperation around the lack of financial acumen of my fellow kiwis.
so when he says the prospectus cover is aimed at his customers if he is right that is scary stuff; cos either saying all young men are mysoginists; or just incredibly insulting both to male and female beer drinkers. I used to drink it - I thought it tasted quite nice...but not anymore
Low interest rates have created a mispricing of risk giving punts like this a chance.
Moa is a cr*p investment and I wouldn't touch it with a barge pole. However the Bakery boys have completed a full discloure and presumably anyone buying into it is going in with their eyes open? Investors are free to put their money wherever they want - just no complaining please, when this thing tanks.
Interesting how many people overlook the rise of craft beer. Acquisition is part of the big-dogs' plan...note Lion just purchased Emersons...