Kiwi jetpack firm raises $6.5m ahead of listing

Jetpack maker the Martin Aircraft Company says it has raised $6.5 million in a private capital raising ahead of its planned sharemarket listing.

The Christchurch-based company, which now has 125 shareholders on its register, had originally planned to raise just $5 million but took $1.5 million in oversubscriptions in the pre-initial public offering (IPO) funding round, which closed one week ahead of schedule.

The cash was raised from sophisticated investors in Australia, New Zealand, the United States and Asia, the firm said.

Reuben Buchanan, managing director of Sydney's Axstra Capital, which managed the capital raising, said he was pleased with the result.

"This result gives us a strong indication of the positive investor interest for the Martin Jetpack story here in Australia," Buchanan said. "We can now focus our attention on the next step which, as previously foreshadowed, includes a possible IPO and listing of the company."

The jetpack maker is looking to raise about $20 million through a stock exchange listing, possibly this year.

Buchanan said Martin Aircraft intended to list later this year either on the ASX, NZX or both exchanges depending on the feedback it received from brokers.

"We are currently speaking to a number of interested brokers and hope to appoint one soon," he said.

The company said the pre-IPO funds would be used to commercialise the the jetpack and pay "ongoing costs".

"The company is seeing increasing interest and enquiries from around the world in its product due to its unique advanced technological capability when compared to its competitors," the firm said. "Due to the success of the [capital] raising the company will hold a general meeting of shareholders shortly to approve the issue of capital exceeding the original estimated raising."

The pre-IPO share price was set at 30c.

The company was last month touting 40 pre-orders for its jetpacks, representing $6 million in sales.

Martin Aircraft expects to launch its Responder jetpacks -- developed for police, search and rescue and other government uses -- next year and its personal jetpacks, aimed at the leisure market, either in late 2015 or in 2016.

The company said it had engaged legal firms Norton Rose Fulbright and Bell Gully, as well as corporate consultancy firm PwC, as it looked to raise further funds and commercialise its technology.