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Powerhouse seeks up to $A20m in ASX listing to fund new investments

The incubator will sell shares at $A1.07 apiece in an offer that opens on August 17. With special feature audio.

Paul McBeth
Wed, 03 Aug 2016

Powerhouse Ventures, the Christchurch-based technology incubator, plans to raise up to $A20 million in an initial public offering on the Australian Securities Exchange to expand its portfolio of investments, including branching out across the Tasman.

The incubator will sell shares at $A1.07 apiece in an offer that opens on August 17, raising $A10-20 million and valuing the company between $A30.8-40.8 million, according to its prospectus lodged with the Australian Securities and Investment Commission. The bulk of the funds raised will go to expanding its $NZ20.9 million investment portfolio spread across 19 different early stage companies collectively valued at $NZ133.6 million.

"We propose to enter the Australian market at a time when governments are determined to ensure university research funding generates commercial outcomes," chairman Kerry McDonald said in a statement. "Powerhouse intends to be a central part of this environment with its excellent university engagement model, business building expertise, capital and networks."

Powerhouse is one of three technology incubators which accesses operational funding, pre-incubation grants, and repayable loans for start-ups they co-fund through government innovation funding agency Callaghan Innovation. It sought to raise NZ$15 million as a precursor to the ASX listing but ultimately attracted NZ$5.2 million in the 2016 financial year, following on from NZ$3.6 million raised in 2015. In February it raised NZ$1.76 million in an equity crowdfunding offer. 

Originally, Powerhouse had planned an NZX listing in New Zealand but decided instead to seek a sole Australian listing because of its bigger capital markets

The company didn't provide forecasts, saying it was "currently in the growth phase any prospective financial information would contain a broad range of potential outcomes and possibilities such that the directors have concluded Powerhouse Ventures Ltd cannot include prospective financial information in this prospectus."

Powerhouse reported a profit of $NZ2.7 million on income of $NZ7.5 million in the nine months ended March 31. That included a $NZ5.8 million increase in the fair value of its investment portfolio.

Of the funds raised, Powerhouse will spend $A5.8 million on new investments if the minimum amount of capital is raised, rising to $A15.3 million if the maximum is achieved. Some $A3 million will go to operating costs irrespective of how much is raised, and between $A1.2 million and $A1.7 million will pay offer costs.

The offer is expected to close on September 15 with the shares listing on September 28.

(BusinessDesk)

BusinessDesk receives funding to help cover the commercialisation of innovation from Callaghan Innovation.

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Paul McBeth
Wed, 03 Aug 2016
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Powerhouse seeks up to $A20m in ASX listing to fund new investments
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