Investors ignore e-stock volatility

By ROB O'NEILL

International e-stock volatility, particularly softness in the business-to-consumer market, is not discouraging eVentures' planned $30 million share offering.

It seems offshore market conditions are not deterring local e-investors either. One such offering now receiving subscriptions is retail site EstarOnline, which reports a high level of interest and firm subscriptions.

"We would have liked overseas markets to be more firm," said chief executive Matthew Darby, "but it doesn't seem to have halted inquiries. When the Nasdaq was swinging last week they didn't miss a beat."

Mr Darby said interest in the float was phenomenal and an extra 6000 share statements had to be printed to meet demand.

He described the level of actual subscriptions as positive.

The eVentures offering is still thin on detail. A prospectus will not be available for a few weeks.

Analysts and institutional investors spoken to by the Business Herald said it was all still a bit of a mystery.

What is known is the company is a venture of the family interests of Sky TV chairman Craig Heatley (20 per cent), Softbank International of Japan (40 per cent) and epartners, owned by media mogul Rupert Murdoch (40 per cent).

Softbank and epartners hold their shares through eVentures Partnership.

The offering aims to raise $30 million through 50 million shares at 60c each.

The minimum subscription is 2000 shares.

In a brief statement on Monday, the company said the equity raised would be invested in joint-venture internet firms.

Using venture-capital jargon, Mr Heatley described eVentures as an "internet accelerator company."

"Our primary goal is to help top e-commerce businesses get started in New Zealand by providing them with investment capital, strategic resources and management services," he said.

DF Mainland's head of research, Bruce McKay, described the information provided to date as "nebulous."

He said investors were still wondering what the company was all about. They did not even know how much of the company the offering related to.

Mr McKay said that with most technology companies, investors were backing the standing of the individuals.

Last week, the company appointed a board of directors including Dr Roderick Deane, of Telecom and Fletcher Challenge fame, The Warehouse founder Stephen Tindall, Todd Capital managing director Robert Bryden and McCollam Capital Partners managing director Steven McCollam.

Three international directors were appointed from epartners and Softbank.

Mr McKay said the local market was still keen on technology stocks. Investors were "foaming at the mouth" over GDC Communications, though this was a telecommunications service reseller.

eVentures chief executive Cindy Mitchener said she was constrained in what she could say until the prospectus was issued.

She has said earlier that two ventures are certain: an online loans service, known as E-loan overseas, and an online shopping mall, buy.com.

Mr Heatley had also indicated an interest in the online travel market.

While these are mostly in the increasingly risky e-tailing market, Cindy Mitchener also indicated investments in e-commerce and business-to-business companies.

Yesterday, the company told the Herald another service, Message Media, would also be launched here.