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A company about to list on the NZX is so confident its product will take off, it will cancel up to 20 per cent of shares held by its founders if it doesn't hit sales targets.
Diligent, an American software company with a Kiwi connection, yesterday began an initial public offer aimed at raising more than $20 million on the local market.
Company founders, who will retain a shareholding of 67 per cent share of the company after the float, have offered a performance warranty to forfeit up to 20 per cent of their holding if prospectus sales targets are not met.
Diligent yesterday opened an offer for 24 million shares at $1 a share - approximately 23 per cent of the company - which will see it become the first US-based company listed in New Zealand.
Founded by New Zealander Brian Henry, Diligent runs a web-based software service that allows companies to manage board papers electronically. Money raised in the offer will be used to expand the company's salesforce to 78 people.
The offer closes on December 5.
