Diligent shares continue to plummet - down 77 per cent from IPO

Shares in Diligent Board Member Services lost another 23 per cent today and those who bought into the New York-based software company have seen 77 per cent of its value eroded since the Initial Public Offering (IPO) in December.

The shares lost 7 cents to hit a record low of 23 cents.

The company raised $24 million from mainly New Zealand investors in one of the few IPOs of 2007.

Brokers said today's fall was likely to be due to a shareholder losing faith.

Late last month, the stock fell 24 per cent following a warning it was unlikely to meet the sales growth target in its prospectus, due to recession in the US.

The company sells and licenses software that looks after the paperwork for corporate board members.

In an unusual move in New Zealand, Diligent's original shareholders promised in its initial public offering to surrender up to 20 per cent of the original share capital if the company did not meet the licence fee sales target.

The company said that now appeared likely to be triggered in part or full.

The IPO turned into a fiasco when it was revealed founder Brian Henry had failed to disclose details about his and his brother Gerald Henry's connection to New Zealand company EnergyCorp which failed spectacularly in the 1980s.

- NZPA