SLI Systems Launches IPO; Forecasts Strong Growth

‘Software as a Service’ (SaaS) website search company SLI Systems Limited (SLI Systems) is to offer New Zealanders the opportunity to share in the rapid growth of online commerce.

The Christchurch-based company is today announcing it will proceed with an Initial Public Offering (IPO) of shares to raise NZ$27 million, consisting of NZ$15 million of new capital and NZ$12 million to be paid to existing investors realising some of their investment in the business.

SLI Systems has registered a prospectus, and approved an investment statement, dated 6 May 2013 in relation to the IPO. These documents can be viewed at:

The Offer Price has been set at NZ$1.50 per share following a book build to institutional investors and NZX Firms. This final price gives SLI Systems an implied market capitalisation following the IPO of approximately NZ$87 million.

The Offer has received strong support from brokers and widespread institutional investor support. Investor demand has exceeded the NZ$27 million offer by 147% (approximately 2.5 times the money sought) at the book build clearing price. Applications have been scaled accordingly. There will be no public pool.

SLI Systems Chairman Greg Cross said: “We are delighted with the extremely positive response from New Zealand brokers and institutions, with nine new institutions joining our register. It shows New Zealand investors are willing to support innovative New Zealand companies on the world stage.”

As part of the IPO, interests associated with Trade Me founder and technology entrepreneur Sam Morgan will invest an additional NZ$1 million at the IPO price. Mr Morgan’s family trust made an investment of NZ$1 million in SLI Systems in 2012. Neither any shareholder nor any other person guarantees the IPO (or the shares offered under it).

SLI Systems Chief Executive and Co-Founder Shaun Ryan said: “SLI has already established itself internationally, with a strong presence in the United States, the UK, and Australia.

“There is global demand for our services due to the fantastic value they offer to customers. We have a strong board and executive management team, a strong and sustainable revenue stream and substantial future growth prospects.”

In the year to 30 June 2012 SLI had Annual Recurring Revenue from its existing customer base of NZ$15.5 million. It anticipates that figure will rise to NZ$19.2 million in the year to the end of June 2013 and to NZ$25.9 million in June 2014 (compound annual growth of 24% and 35% per annum respectively).

Due to the investment in initiatives intended to generate future growth, SLI intends to make losses in the near term.

“SLI’s continued strong growth will follow from the investment of the IPO proceeds into additional sales and marketing initiatives in existing markets, expansion into promising new markets and enhancements to SLI’s product range.

“SLI is looking forward to a bright future as an NZX-listed company,” Mr Ryan said.

The Offer will open on 14 May 2013 and will close on 28 May 2013. Quotation and trading of shares is expected to commence on the NZX Main Board on 31 May 2013.

Prospective investors can contact either of the Joint Lead Managers, Craigs Investment Partners or Forsyth Barr, or any NZX firm for further information.

SLI will hold a press conference this afternoon to discuss the IPO:

S.L.I. Systems
78 – 106 Manchester Street
1pm, Tuesday May 7, 2013

The press conference will also be webcast and attendees can register here

For those wishing only to dial in:
Tel: (0) 9 925 0481
PIN: 946-733-546

Shaun Ryan
CEO & Co-Founder
Mob: 021 360 649,

Richard Inder
Merlin Consulting
Mob: 021 645 643

Application has been made to NZX Limited (“NZX”) for permission to quote SLI Systems Shares on the NZX Main Board and all the requirements of NZX that can be complied with on or before the date of this announcement have been complied with. However, NZX accepts no responsibility for any statement in this announcement.

NZX is a registered exchange, and the NZX Main Board is a registered market under the Securities Markets Act 1988. Investors must receive a copy of the investment statement before subscribing under the Offer, and may only do so after the Offer has opened and only if the Financial Markets Authority has not extended the “Consideration Period” under the Securities Act 1978.

None of the persons named (nor any other person) guarantees the Offer or the shares. Potential investors should read the Offer Documents carefully, and consult an Authorised Financial Adviser for investment advice.

About SLI Systems

SLI Systems provides full-service site search, navigation, merchandising, and user-generated SEO, and is the top SaaS-based site search provider to IR 500 and IR 1,000 retailers. Unlike traditional search software, SLI Systems’ patented technology continuously “learns” from the behavior of visitors over time to deliver more relevant results. This learning-based search and navigation technology empowers retailers and content sites to enhance customer satisfaction by helping site visitors find the products and information they seek as quickly and efficiently as possible, increasing site conversions and average order value. SLI Systems is a privately held company, with offices in San Jose, CA; London, UK; Melbourne, Australia; and Christchurch, New Zealand. For more information about SLI Systems, visit