Investors' appetite boosts Snakk share price
Mobile media firm Snakk Media has almost quadrupled its share price on its first day of trading, despite brokers appearing to know nothing about the company.
Snakk Media was the first new listing in New Zealand this year, and its shares began on the NZX Alternative Board (NZAX) at 6.5 cents.
The price rose 392 per cent to trade at 32 cents early yesterday afternoon.
Asked for their reaction to the increase, several brokers were unable to comment on Snakk Media because they knew little or nothing about the company.
Forsyth Barr broker David Price said he was unable to comment on the stock's rapid rise.
"I know absolutely not a thing about it."
Snakk Media was set up by Hyperfactory co-founder Derek Handley and Andrew Jacobs in 2010.
Last year Derek Handley said the firm had gained an estimated 15 per cent to 20 per cent of Australia's mobile advertising market in two years.
The company intended to raise capital for further growth in Australia and to enable expansion into Southeast Asia and India.
The NZAX was designed as an alternative marketplace for fast- growing small to medium-sized companies seeking to raise capital with fewer barriers than going public.
Snakk Media executive director Mark Ryan said he was excited by the day's trading.
"We weren't really sure what to expect.
"It's been very exciting and gratifying for the team who have worked very hard to get us here."
He said the movement reflected the company's confidence in its own performance.
"We're in a great space, the business has been performing strongly, and there is a great feeling of confidence within the business."
Trading closed at 29 cents a share, a rise of about 345 per cent for the day, on just 66 trades.
Correction: An earlier version of this story wrong said that Snakk Media was set up by The Hyperfactory founders Derek and Geoffrey Handley in 2008.
The Dominion Post