KEY POINTS:
What is this product?
Pike River Coal is an initial public offering (IPO) on the New Zealand sharemarket.
Who is behind it?
Pike is a subsidiary of listed company New Zealand Oil and Gas, which is developing a coal mine on the West Coast.
Who is the target market?
Investors who want to take on a speculative, resource based share investment.
What return does it offer?
The prospectus doesn't contain any financial forecasts, so it's pretty much anyone's guess.
When was it launched?
The offer documents were registered on May 22 and the IPO is due to close on July 10.
What other products is it like or is it competing with?
Other listed resource companies both on the NZX and the Australian Stock Exchange.
Is it long term, short term or medium term?
Probably long term.
What's the unique selling point?
A relatively unique chance to invest in a local resource stock.
How strong a stomach do you need for it and what are the risks?
An ironman strong stomach and and there are plenty of risks, including future prices for coal, earthquakes, cost overruns and delays.
www.sharechat.co.nz
