Brent Robinson remembers watching his father polish crystals on the end of his finger in the family basement, where technology company Rakon was founded in 1967.
Yesterday, Robinson, who is now managing director, was watching again as it listed on the NZX at $2.20 a share - a 37.5 per
cent premium to the $1.60 issue price.
Shares closed for the day up 76c at $2.36, an increase on the issue price of 47.5 per cent, giving Rakon a market capitalisation of $251 million.
Robinson said: "It marks an important milestone in the company's development. We always said when we reached a point where we can't fund it out of the family that we wouldn't hold the company back and [would] look to the capital markets to fund it further."
Auckland-based Rakon designs and manufactures high-performance crystals and oscillators used in global positioning systems products.
Demand for the initial offer of 41,250,000 shares valued at $66 million had outstripped supply but Robinson had not been tempted to raise more money. The Robinson family has retained a 41.6 per cent stake in the company post listing.
The money will be used to fund growth through product development, investment in manufacturing and factory expansion.
Robinson said GPS was still the main market but the company would look to expand into areas including microwave and satellite communications, which have similar needs.
Rakon had investigated listing in the United Kingdom and United States before deciding on New Zealand.
"In balance, we thought that the New Zealand investment community and New Zealand public would support Rakon, so it was very pleasing to see a response like that."
Jonathan Oram, director capital markets for the offer's lead manager UBS New Zealand, said the listing would give Rakon the opportunity to go back and raise more money when needed.
"Certainly, we're hoping it's going to open up a whole menu of different options for them in terms of penetrating further into the GPS market."
NZX head of markets Geoff Brown said the debut was Rakon's day but underlined the significance of having the company list in its home market.
"To have a company with the growth prospects that this company has listing on the NZX is a fantastic result for us," Brown said.
"It does ... provide the opportunity for New Zealand investors to invest in what is a very exciting company."
Brent Robinson says Rakon will look to expand into microwave and satellite communications. Picture / Kenny Rodger
Brent Robinson remembers watching his father polish crystals on the end of his finger in the family basement, where technology company Rakon was founded in 1967.
Yesterday, Robinson, who is now managing director, was watching again as it listed on the NZX at $2.20 a share - a 37.5 per
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