What is it called and what sort of savings product is it?
Auckland-based contact-centre software company Datasquirt is raising A$10 million (NZ$11.3m) in an ASX initial public offering.
What is the company behind it?
Auckland-based Datasquirt was established in 2001 and originally worked in theSMS market. However, it moved its business into the call-centre market in 2004. The offer is fully underwritten by Australian broker Bell Potter.
Who is the target market?
Share-market investors looking for a home-grown growth story.
What return does it offer?
Like all share IPOs there are no promises. Here's what the company says: "No amount of returns quantifiable at the date of this investment statement and enforceable by subscribers has been promised. The board is not able to state with any certainty at this time the dates, or the frequency on which, any return on new shares will be due or paid."
When was it launched?
The IPO opened on July 16 and closes on Thursday.
What other products is it like or competing with?
This share falls into both the small cap and the technology sectors. Datasquirt chose to list on the ASX because there is more capital and investor interest across the Tasman than in New Zealand.
Is it long term, short term or medium term?
Investors should look at this product as a medium to long-term growth share.
What is the unique selling point of the IPO?
What's nice about this offer is that it is a good growth story in the IT sector, the company has an award-winning product, and the money being raised is actually being used to develop products and market them offshore.
How strong a stomach do you need for it?
This is a share investment that is more towards the higher end of the risk spectrum.
What's the hitch?
Firstly, there is a currency issue to be aware of because Datasquirt will list in Australia. But that can be good and bad. Secondly, the biggest risk is that the company is playing in the highly competitive IT sector but, with a good product and management, companies have shown they can succeed.
