How to keep New Zealand high-tech companies at home while allowing them to grow? Look to London, says Endace.
The internet security company is set to list on the AIM (alternative investment market) of the London Stock Exchange and hopes to blaze a trail that other local tech firms can
follow - something that allows them to raise money yet stay here.
Endace will be the first New Zealand firm to list on the AIM, where it hopes to raise about $36 million, by placing new and existing ordinary shares with UK institutional investors. The three founders, Professor Ian Graham, Selwyn Pellett and Neil Richardson, and shareholders will sell their ordinary shares for up to $18.2 million.
Money raised in the issue will be used to set up a direct sales force, more product development and investing in R&D.
Many of the world's intelligence agencies use Endace technology to monitor internet traffic for key words and sources that may alert them to terrorists.
Graham said that while Endace had a global presence, it was staying put. "We are a global company and it's good to be able to say to our customers: yes, we're a company that's listed on the AIM market in London and we are also a New Zealand-based, New Zealand-registered company."
Raising money and listing on AIM seemed to be one of the few ways to keep the company based here. " "
www.endace.com
