A practical guide to taking a Company public in NZ

Seminar

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

Company public in NZ

By Paul Devereux (FCIS, BCom, LLB, MNZIM)

Company Secretary & Corporate CounselBurger Fuel Worldwide Ltd

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1.1 Key Topics for Today

► Experience & Training

1. Overview

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► Preliminary Questions & Points

► IPO Management & Processes

► The Prospectus & Marketing the IPO

► Q&A’s

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A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

2.1 Background & Relevant Training

► Paul Devereux completed Chartered Secretarial qualification in mid 2003 & admitted as an Associat e

2. Experience

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► Self employed Management Consultant & Corporate Law yer

► CSNZ training has helped with working as a Project Manager for the Burger Fuel Worldwide IPO

► Previous experience – private legal practice & Red Bu ll Australasia

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3.1 Why go Public ?

► Access to capital

3. Preliminary Questions

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► Extra management discipline & focus

► Liquidity in shares

► Acquiring a wider shareholder base (eg. attracting institutional investors etc)

► Enhanced mana and prestige

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3.2 What are the public options in NZ ?

► Public and not listed

3. Preliminary Questions

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► Public on “Unlisted” Exchange

► Public on NZ Stock Exchange (NZX)

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3.3 Planning & Management

► Management team

3. Preliminary Points

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► External advisors

► Due Diligence Committee

► GANTT Charts & “To Do Lists”

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4.1 The Management Team

► Shareholders

► Directors

4. IPO Management & Processes

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► Directors

► Finance Manager

► Company Secretary

► Marketing Manager

► Other staff (eg. Operations)

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4.2 External Advisors

► Accountant

► Auditor

4. IPO Management & Processes

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► Lawyer► Stock Broker ► Investment Banker► Insurance Broker► Share Registry Provider► Advertising Agency► Printer

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4.3 Due Diligence Committee

► Composition & Participants

4. IPO Management & Processes

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► Function (see Due Diligence Planning Memorandum)

► Meetings

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4.4 GANTT Chart – IPO Timelines

4. IPO Management & Processes

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

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A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

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5.1 The Prospectus – the process of putting it toget her

► Start with a skeleton► Look at various other prospectuses (internet)

5. The Prospectus & Marketing the Offer

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► Look at various other prospectuses (internet)► Topics for the Chartered Secretary to assist with:

- Board Composition- Corporate Governance Statements- Minimum Subscription amounts- Offer period- Standstill agreements- Financials, Legals & Business issues- Insurance: (i) D&O (ii) Prospectus Liability Insur ance

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5.2 Stakeholder approval (sign off) for the Prospec tus

► Companies Office

5. The Prospectus & Marketing the Offer

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► NZX Regulatory (Application & Listing Agreement)

► Due Diligence Committee

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5.3 Offer Opens & Marketing of Prospectus

► Strategy needed for:

- Media (journalists)- Marketing (TV, radio, cinema, print & website)

5. The Prospectus & Marketing the Offer

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

- Marketing (TV, radio, cinema, print & website)- Investor queries- Monitoring blog’s etc

► Taking Orders:

- Application Forms - On-line applications- Other (eg. instore)

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5.4 Share Registry Providers

► Computershare & Link Market Services

5. The Prospectus & Marketing the Offer

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► Their function:

- Administering & vetting share applications- Assist with cheque processing, direct credits &credit card payments

- Daily Totals (reaching the minimum subscription le vel)

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5.5 During Offer Period

► Ensuring NZX regulatory compliance

► Notifications to the market via NZAX portal

5. The Prospectus & Marketing the Offer

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► Notifications to the market via NZAX portal

► Due Diligence Committee meetings to monitor progres s & any problem issues

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5.6 Offer Closes

► Confirmation you’ve met or exceeded your minimum su bscription & advising the market of same

► Allotment of shares (dealing with oversubscriptions )

5. The Prospectus & Marketing the Offer

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► Allotment of shares (dealing with oversubscriptions )

► Resolutions to issue new public shares

► Paying annual listing fee & NZX regulatory fees

► Shareholders receive CSN#’s and FIN#’s

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5.7 You’re Public !

Market related legislation to comply with:

► Securities Act & Regulations + Securities Markets A ct

5. The Prospectus & Marketing the Offer

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

► NZX Listing Rules

► Takeovers Act & Code

► Companies Act

► Investment Advisors Act

► Company Constitutions19

Q & A’s

5. The Prospectus & Marketing the Offer

A Chartered Secretary’s Perspective - Taking a Comp any Public in NZ

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