Move over Trade Me, here comes Webuy

CHRISTCHURCH - Traders using a new internet online auction site will be allocated free shares in the New Zealand company that runs it, in a concept billed as a world-first.

The brainchild of colourful Christchurch businessman and entrepreneur Brooke McKenzie, the new site, webuy.co.nz, goes live at 1pm next Tuesday.

Unashamedly following the huge success of Trade Me, the privately-funded newcomer Webuy Ltd aims to issue 49.5 million shares to buying and selling members and volume listers free of charge.

The Christchurch-based company is listed as having 100 million shares, with Mr McKenzie holding 20.5 million, 10 million allocated to staff and a further 20 million available for private placement if required.

Shares have A, B and C rankings and all are dividend-bearing.

The Webuy website states that members are not obliged to accept shares as they are offered free and without obligation "in the hope that sometime in the future they will have value for all those involved in Webuy Ltd".

The company is not soliciting funds from members.

Well-known in business circles, Mr McKenzie set up the successful interisland freight shipping company Pacifica Shipping Ltd and ran the Top Cat fast ferry service between Picton and Wellington, which folded in 2000.

After a lengthy hiatus from business and a bout of ill-health, Mr McKenzie says he is relishing being back in a hands-on role.

"It's exciting," he told NZPA. "It's about time I got my teeth into something again."

Mr McKenzie said he would be "captaining the ship" for now as managing director, but other shareholders with their own expertise were coming in.

"I'll be getting it going to my satisfaction and then I'll hand it over to someone.

"But I have committed five years to this and I'll tackle it with dogged determination."

The concept of allocating free shares to traders, Mr McKenzie said, was a "world first" although many companies including Trade Me contemplated during the dot.com boom of the early 2000s.

"I've been working on this for a long time and it's going to be intriguing to see the way it goes.

"At the moment all indications are that it's going to be huge."

Experience around the world has shown the first to market operator has a huge advantage, which is one reason why eBay has shunned entering New Zealand and why Trade Me has not entered the Australian market, despite being Australian owned.

The professionally designed website is easy to navigate and offers a large range of auction categories from arts and crafts to motor vehicles and real estate.

Mr McKenzie said he'd had "wonderful support" from big players involved in auction site trading.

"Now we're ready to let the mums and dads sign up and start using the site and to receive shares in Webuy for doing so."

- NZPA