Wellington Drive lists on main board

By ELLEN READ markets writer

Electric motor company Wellington Drive Technologies says its stock exchange listing gives shareholders increased liquidity and enhances the company's credibility when dealing with international firms.

Wellington Drive - quoted on the exchange's secondary market for the past five years - stepped up to the main board yesterday, opening at 81c. The shares closed down 1c.

The Auckland company makes brushless motors used in fans, air filters and air conditioners. The electronically controlled motors are made largely of plastic and magnets. Advantages over conventional motors are energy efficiency and less noise.

Managing director Ross Green said the listing was a matter of compliance only. Wellington Drive was well financed after institutional placements last year.

The listing coincides with the company's release of two motors at the Domotechnica trade fair in Cologne next week - a low-power fan motor (the RF66) suitable for use in many domestic appliances and a higher powered motor (the RF200) suitable for air conditioning units and heat pumps.

Wellington Drive has 101 million shares on issue.

The largest holders are chairman Ray Thomson (16 per cent) and venture-capital vehicle the Greenstone Fund (13 per cent).

Last week, the company posted a net loss of $858,000 for the six months to December 31, deteriorating from the $445,000 net loss reported for the previous first half.

The company said in its listing profile that it would trade at a loss in the year to June 30 as it substantially increased its marketing activities and scaled up investment in developing motors, components and motor assembly processes.