2380 investors, $5.25m raised. That’s $2,205 per investor – paltry. A poorer showing given that they even spent money on TVC’s advertising the float. Goodness knows what the total expenses were for the float, but this can’t have been an efficient way of raising the cash – especially as the founders appear to have deep pockets anyway.
Founder/owners Roberts & Mason will chip in $2.75m so that the minimum of $8m is attained, but those poor newbie investors will collectively have just 8.75% of the equity.
Not a lot of professional investors in there, which means that this thing could do anything once the shares are listed. From memory the BurgerFuel shares will be on the B market anyway, which one expects to be thinly traded and volatile.
Hardly a listing. Hardly a market.
Lance Wiggs 
With the benefit of 20/20 hindsight maybe they should have written the $2.75 million check to fund the initial expansion and delayed the float/capital raising. Based on statements in the prospectus the IPO process would have cost $1.2 million if they had raised the targeted $15 million. This included a 1% of capital raised success fee and a 3% brokerage fee. This equates to a fixed fee of $600k + a variable component that is a function of the capital raised. Assuming that the brokerage and success fee only applied to the external capital ($5.25 million) the cost of the IPO was $810k or ~15% of the external capital raised. That looks like the hard way to finance your business.
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IMO, I think that the efforts of the owners Roberts & Mason have to be congratulated. They have been building up their business for over a decade and now they want to expand it. I am disheartened to see the media and the so called experts put them down, which gives potential investors, some doubts in their minds about investing in Burger Fuel. Success & failure is part of everyday life, but at least success equates to high risk taking and I take my hat off to these business entrepreneurs (Roberts & Mason), for the willingness to lean forward and take the risk.
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Thanks for the comment Falafulu
No-one is saying that Roberts and Mason have not created a great business – they have.
At question is how much that business is worth. The pundits (and the telling lack of investors) are saying that the value of Burger Fuel is significantly less than the value offered to the public.
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Yes they’ve done well, good for them. Great. But be clear they have reinvented the wheel. There is nothing innovative in BFW, a burger is a burger like the dozen other botique operators in Aussie.
While I’m sure BFW has already or will soon buy the owners a lovely spot on Waiheke it is still a clone and becasue of that it won’t have the growth capacity to grow its $1000 shareolders even to the level of buying a small car with the gain. That’s the paydirt.
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As a speculative punt i decided that i would buy a minimum allocation – no i wasn’t going to bet the house on it. and this is what quite a few people have done. i can’t see many people throwing big chunks of cash at this. When i saw the numbers were not adding up i made some enquiry. burgerfuel 0800 said they could not tell me the total number of subscriptions received. Computershare told me the same thing (but let slip they knew). I sent an email to BFW and said i believed they had only $1.6m from 1600 punters. i was told by email i was wrong and the figures were much better than i guessed. but still they refused to tell me because ‘they didn’t have the final figures’. i said ‘but you know the total investors (1600) so you must know how much was subscribed. i was getting nowhere. and now the figures are out – 2300approx – not far from my estimate. what a flop. i suspect the biggest investors are at $5k with the majority at $1k – won’t the annual report be telling showing who was stupid to bet the house on this. anyway as i said, it is a speculative food stock and don’t bag it just yet (remember 42Below). and just for laughs, the 1000 share sell off hit the founders $522k – so my (and many others) $190 is neither here nor there. i just feel sorry for those who got this by using the credit card – NZX should be held to account for allowing this as a payment method – bad bad bad Mr Weldon.
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