BioVittoria raising extended once again

BioVittoria chief executive David Thorrold. Photo / Sarah Ivey

BioVittoria has extended its capital raising for the second time - the third public listing to hit bumpy ground in the last month.

The Hamilton-based biotechnology firm which produces a natural no-calorie alternative to sugar called PureLo, yesterday said it would prolong its capital raising to December 29 and aim for a stock exchange listing on January 7.

The company had initially planned to close the capital raising on November 25 and list in early December but that was extended to this Friday after it received requests from brokers for more time to study the offer.

BioVittoria announced plans to raise up to $20 million on November 9 but a lot has happened in the IPO space since then.

South Island dairy company Synlait confirmed plans to raise up to $140 million and list soon after BioVittoria's prospectus was launched but pulled it before the details were released over what is believed to be pricing issues.

While property fund DNZ dropped plans for a $130 million capital raising and public listing, last week citing investor "confusion and concern" amid debate about the deal's merits.

However both are expected to try again in the New Year.

Craigs Investment Partners head of research Mark Lister said he did not believe the capital markets were broken despite the stumbles.

"Each of the three have failed or stumbled for very different reasons."

Lister said it was hard to know if the BioVittoria listing would succeed.

"This is a business that is at a very early stage, not at a stage of life cycle that investors would be used to, especially in New Zealand."

Lister said it was an interesting business with good potential but for many investors it was in the "watch this space" basket.

He said brokers and analysts would need to do three times as much due diligence on the business as they would for a float such as Kathmandu or Myers where the businesses were already well established.

Lister believed the timing of it so close to Christmas when there were also a lot of other offers had also made it harder to raise money.

"At the end of the day capital is pretty scarce and investors have the right and the power to be fussy."

But BioVittoria chief executive David Thorrold remained confident the listing would go ahead. "We expect it will."

Yesterday the company said in a statement it had received a good response from many investors but financial advisers had indicated more time was needed because of the unique nature of BioVittoria as an investment.

Thorrold said there had been a number of other debt investments running at the same time which had made it tough.

"There has been quite a lot going on. Talking to brokers we got a sense they did need more time."

But if the capital raising goes ahead it is likely to be a far lower level than what the company had originally hoped for.

Yesterday the company said it was close to reaching its minimum subscription level. That was set at just $8 million.

Thorrold said it was too soon to say how much the company would end up raising. However if the company did not raise the minimum $8 million by December 29 it would not be extending the offer further.

WILL IT FLOAT?

Planned sharemarket floats this year:

Kathmandu...listed

Synlait...pulled

DNZ...pulled

BioVittoria...raising extended