Martin Aircraft takes off on ASX
The stock opened trading at a 50% premium to its offer price.
Christchurch-based Martin Aircraft [ASX:MJP] has begun trading on the Australian stock exchange with its shares listing at a premium to their offer price.
The stock opened trading at A60c, compared to the A40c offer price, valuing the company at $A103 million.
The share market listing followed an initial public offer that raised $A27 million to fund plans which it says will make it the world's first commercial jetpack manufacturer by 2016.
A Chinese entrepreneurial investor, Hong Kong exchange-listed KuangChi Science, bought most of the shares offered in the IPO –52.5 million – for $A21 million.
Existing investors cut their stakes in the company ahead of the IPO. Mr Martin sold $1.5 million of the stock taking his stake to 15.9%, while Jenny Morel's venture capital firm No. 8 Ventures sold $1.9 million worth of shares to hold 19.2% post-IPO. Ms Morel also halved her own personal stake selling 268,519 shares for $107,407.
Martin Aircraft is developing the Martin Jetpack for recreational, surveillance, and emergency response use, and an unmanned aerial vehicle version the Martin Skyhook, to use in conflict and search and rescue operations.
The company says the Martin Jetpack can fly for over 30 minutes, compared with competitors that have flying times of between 30 and 75 seconds, at speeds up to 74 km/h and altitudes of up to 1000 metres. The company expects to make its first jetpack delivery in the second quarter of 2016.
Martin Aircraft made a loss of $3 million in its 2014 financial year and will not make any commercial product for another two years, although says it could make up to 500 Jetpacks a year at its Woolston, Christchurch facility – or a gross $US100 million at the Jetpack’s full retail price of $US200,000.
Duncan Bridgeman
Tue, 24 Feb 2015
Tue, 24 Feb 2015
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Martin Aircraft takes off on ASX
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