What is it called and what sort of savings product is it?
Tasman Capital is an initial public offering (IPO) seeking to raise $300,000 from 500 people.
Who is the company behind it?
The company has been established by a number of businessmen with littlepublic profile. Chairman Keith Jackson was the chief executive of Tegel from 1980 to 1996.
Who is the target market?
Tasman has an unusual business plan. It aims to create a series of listed shell companies and then sell them to other firms that want to list on either the NZX or NZAX by doing what's known as a "backdoor listing" into one of the shell companies. Tasman shareholders will become shareholders in the newly listed entities. The offer appeals to people who want to get in on the ground with small to medium-sized companies when they list.
What return does it offer?
No return is offered. Any return will be based on the success of the company in helping other companies list. The returns will come from the shares of those listee companies, rather than Tasman itself.
When was it launched?
The offer opened on June 5 and will close on August 31.
What other products is it like or is it competing with?
Tasman is all on its own. No one else is doing anything like it.
Is it long term, short term or medium term?
This is a long-term investment. Tasman aims to list 20 companies in the next 10 years and the returns will come from these companies.
What is the unique selling point of this IPO?
The unusual nature of Tasman Capital's business activity.
How strong a stomach do you need for it?
This could be described as a speculative investment, however the risk isn't particularly big in monetary terms because the investment per shareholder is limited to $500 each.
What's the hitch?
The concept around Tasman is a little untested and will rely on management's ability to sell shell companies to businesses wanting a back-door sharemarket listing.
