New Zealand Exchange Limited (NZX) announced today that Rakon Limited (RAK) has gained a place in the NZX 50 Index. Rakon Limited will replace Promina Group Limited (PMN), which is to be removed as a result of its merger with Suncorp-Metway Limited. The index change will be effective at the opening of trading on Monday 12 March 2007.
Rakon is a world leader in the development and production of high performance quartz products and crystal components for applications such as GPS technology. The company listed on the NZSX Market on 16 May 2006, subsequent to an initial public offering (IPO) in which NZ$66 million was raised by issuing shares at $1.60. In 10 months since listing, Rakon's share price has increased by 175%. In February this year Rakon used its NZX Listing to raise an additional NZ$60 million via a placement to institutional investors, to fund an overseas acquisition, and is currently raising further funds via a Share Purchase Plan.
Rakon will initially rank around 37th in NZX 50 Index.
Rakon's listing in May 2006 coincided with the launch of the NZX SciTech Index, which has given a total return of 18.9% in the last 12 months. Other top performers in the NZX SciTech Index have included amphibious boat maker Sealegs Corporation Limited (SLG), software house Software of Excellence International Limited (SOE), and the health products company Comvita Limited (CVT).
Rakon Limited will be added to the NZX MidCap Index and NZX 50 Portfolio Index also. The NZX MidCap Index comprises the domestic companies in the NZX 50 Index, excluding those in the large-cap NZX 10 Index. The NZX 50 Portfolio Index is a replica of the headline NZX 50 Index, except with the weight of each security capped at 5.0%. Rakon Limited will continue to hold a place in the NZX SciTech Index but will be removed from the NZX SmallCap Index.
Inclusion in or exclusion from an NZX Equity Index in no way reflects an opinion on any NZX Listed Issuer – index constituents are determined solely by the NZX Index Methodology.
