2018 Retail Offer Results, Share Trading and new Wholesale Offer

Retail offer closed in November 2018

Welcome to 158 new investors, and many thanks to all 321 investors who invested a total of $2,536,506 in the October 2018 retail offer.

Selected Offer Statistics
This year we experimented by lowering the minimum investment amount to just $215 – for 10 shares. This was taken up by 28 investors, including 7 existing investors.

  • 25% of the total funds raised was from investors placing less than $10,000 – who represented 79% of number of investors in the Offer.
  • The total amount raised was split roughly equally between existing and new investors.
  • We now have 842 investors

After the investment, in accordance with our SIPO, we allocated $1.195 million to our operating reserve (including expected dividends). This left $2.280 million to allocate to investments, and in true Punakaiki Fund style, and as promised in the October 2018 Product Disclosure Statement, we put most of the funds to work immediately.

New Investments 
The following investments were made after the close of the offer, for a total of $1.613 million. We acquired:

  • 159,022 shares of Melon Health, which, after other parties have invested, will see Punakaiki holding over 30% of the company
  • 164,591 shares from Devoli which will lift our shareholding to over 43%. 
  • 5,186 shares in Coherent Solutions, which will lift our shareholding to over 17%.

Once again our thanks to all investors – in this and previous rounds. We are delighted with the progress we were making.

Share Trading Results
The results of the December 2018 share trading window demonstrated a new level of liquidity for Punakaiki Fund shares, but also validated that we all like a bargain.

The final result saw over $260,000 trade hands – with over 14,000 shares sold and purchased at $18.50 per share. This represents a 14% discount from the Offer price for the recent retail and current wholesale rounds – a great price.

Even at that price most investors saw some great investment returns – averaging 25% for the 17 sellers, and ranging up to gains (for two investors) of 60%. Two of the investors did lose money however, one dropping 5.1% and the other 3.3%.

This was by far the greatest number of shares that we have seen traded in a single share-trading window. This was, we believe, a result of us making the process visible to all investors through the daily emails. We will continue to do this, and will also (after dealing with a lot of paperwork) investigate other mechanisms to make for a smoother process. If we continue to see this level of activity then it will also lead us towards more frequent share trading windows.

Wholesale Offer now open

For those of you that missed out on the 2018 retail offer or would like to purchase more shares, Punakaiki Fund have released a new Offer to Wholesale investors. This is intended to be offered continuously, with the offer price being changed only when it differs from the iNAV per share by more than 50 cents.

The Wholesale Offer IM and current iNAV per share and offer price is available on the Punakaiki Fund homepage.

Lance Wiggs
Director/Manager