Viking falls short of first target

Investment company Viking Capital failed to raise the $15 million for which it had hoped but demand on the first day of trading yesterday was still strong enough to drive its share price higher.

Brent King, Viking chairman and managing director, said there was no question the company would have liked to raise more money "but we're very happy with where we are".

Trading in Viking yesterday pushed the share price up 3c to close at 28c.

The company beat its minimum target of $8 million by raising more than $12.4 million from the offer of shares at 25c each, despite criticism from investors that the prospectus was short on information.

The prospectus lacked detail on business projects and financial projections by both design and necessity, King said. "We couldn't disclose that because part of our business is to act with stealth," he said.

"If we gave too much indication at this stage then of course we'd lose the price advantage."

The company was currently monitoring seven or eight investment opportunities, he said.

Macquarie Equities investment director Arthur Lim said market interest in the float had been more client-driven than broker-driven.

"We actually had clients who, because of Brent King's background, wanted to participate in the float."

King is the former managing director and founder of finance business Dorchester Group.

King said Viking had had a lot of interest from a broad range of investors.

"Institutional interest was also strong, though many found it hard to invest at this stage," he said.

Once Viking had a track record and could provide more details about specific ventures, the stock would become more attractive to institutions, he added.

"The Viking Capital directors believe the reshaping of the New Zealand economy over the next five years presents great opportunity for astute investment strategies executed well," King said. "At Viking we have the strategy, networks, know-how and skill to capitalise on this for our investors."

The take-up of the share offer was a vote of confidence in the directors - including 42 Below chairman Grant Baker and former finance minister Sir Bill Birch - and announced shareholder expectations of significant rewards, King said.

Market notices yesterday showed King was holding 40.3 per cent of the stock, while Baker and associated interests held 13.4 per cent.