SeNevens IPO raises $2.7m

Ascot-based SeNevens International Ltd, the company behind the Safeties Nature Nappy, closed its initial public offer last Friday well oversubscribed, raising more than $2.7 million.

SeNevens owns patented intellectual property to a unique fully biodegradable composite that is made from natural and reconstructed fibres, and can be applied in nappy, wipes, incontinence and sanitary protection sectors.

SeNevens executive chairperson Charishma Seneviratne said there had been strong demand for SeNevens' shares which it believed reflected the confidence its investors had in the company's prospects and technology.

Having closed the offer, the company now intends to proceed with listing on the Australian Securities Exchange.

Trading is expected to commence in the following weeks.

With these additional funds, the company said it was now in a position to accelerate the commercialisation and distribution of the Safeties Nature Nappy and subsequent products lines.

The combined global market for these products is extensive, reaching an estimated $48 billion in 2006.

The level of interest in the IPO does not appear to have been effected by reports last month that the company was the subject of an Australian Competition and Consumer Commission investigation.

A SeNevens spokesperson could not elaborate significantly on the nature of the ACCC's inquiry at the time, adding only that the watchdog had sought historical marketing information and claims about biodegradability relating to a complaint emanating from Tasmania.

The spokeperson said SeNeven was unaware of the nature of any complaint that might have been made or the identity of any complainant.

In its original prospectus SeNevens also revealed litigation with a former, unnamed CEO who had claimed one year's fee amounting to $263,780 over a terminated consulting agreement.