KEY POINTS:
What is it called and what sort of savings product is it?
Taupo Motorsport Ltd is seeking up to $2.75 million in an initial public offering (IPO) and is planning to list on the NZAX.
Who is the company behind it?
Taupo Motorsport Park operates
New Zealand's premier international motorsport venue, which hosts a round of the A1GP, and a business park, which includes conference facilities, a drag strip and driver training area.
Who is the target market?
Petrolheads and investors who are interested in yield stock.
What return does it offer?
TMP is a relatively new company and its performance is pretty hard to measure. However, the company is planning to pay dividends. It is also expecting to pay fully imputed gross dividends of 1.5c per share in the current financial year as well as 9c per share in the year ending March 31, 2009.
When was it launched?
The offer opened on September 24 and closes on Friday. The actual raceway was formerly known as Centennial Park and established in 1977.
What other products is it like or is it competing with?
This share offer is pretty unique and it doesn't have any direct competitors.
Is it long term, short term or medium term?
This is a medium to long-term share investment.
What is the product's unique selling point?
If you are into motorsports there are extras offered. These include the annual Shareholders' Drive Day on the track, plus membership of the Chairman's Club. However, in order to get these benefits investors are are required minimum shareholding levels.
How strong a stomach do you need for it?
Reasonably strong, however it looks to be a reasonable yield play for investors.
What's the hitch?
Traditional sporting arenas, such as stadia, haven't proved to be good investments. This is partly because they are large and expensive assets, which spend a long time sitting empty. Taupo Motor Park is a little different as it is used for plenty of other events, other than just the big races such as the A1GP.