Wellington Drive Technology is planning to list on the stock market's main board before the end of the year.
The Auckland-based company, which designs and manufactures brushless electric motors for fans and other appliances, yesterday said it had signed a deal with United States-based Torrington Research Corporation.
The Connecticut firm designs and makes cooling systems and has agreed to test the motor, which, because of its plastic components, is said to be more efficient than other motors.
It vibrates less and can be shaped into any mould.
Torrington - whose clients include heavyweights Ford, Nasa and General Electric - said the trial would initially be for 12 months.
WDT is listed on the New Zealand Stock Exchange's secondary market, where it has been a standout performer this year.
Its shares traded around the 20c mark between January and March, but last month the stock price hit $1.
This week, it was back around 80c.
WDT managing director Ross Green was not available for comment this morning but he said in a media report that the company was not planning to raise capital when it listed on the exchange's main board.
The company's move to the main board was for the benefit of offshore investors, who preferred to be involved with listed entities, he said.
As a listed firm, the company will have to supply investment markets with a lot more information.
WDT has a market capitalisation of $80 million with about 100 million shares on issue.
Its main shareholders are the Greenstone Fund and interests associated with the original investor, the Thompson family.
- NZPA
US deal drives motor firm towards main board listing
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