Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


CORRECT: Gentrack IPO priced at $2.40

CORRECT: Gentrack IPO priced at $2.40, raising $36 mln of new capital

(Fixes listing date in 7th graph)

By Paul McBeth

June 6 (BusinessDesk) - Gentrack Group, which develops utilities and airports software, will sell its shares at $2.40 in this month's initial public offer, raising $36 million of new capital, and letting its owners sell down their holdings.

The company will sell 15 million new shares and the existing owners will sell 26.3 million for a total offer of $99.1 million after the price was set in a bookbuild process for institutional investors and participating brokers, Auckland-based Gentrack said in a statement. The price is near the top end of the $2 to $2.50 range touted when the prospectus was lodged last month. The price implies Gentrack will have a market value of $174.5 million, which would make it the 62nd biggest company on the NZX All Index.

The new funds raised will go to paying down Gentrack's debt, and the existing shareholders will keep about 43.2 percent of the company after the sale.

"Gentrack is heartened by the keen interest from institutional investors in New Zealand and Australia, as well as strong retail interest," chairman John Clifford said. "The successful IPO positions the company to build on its strong track record of delivering mission critical software solutions to customers in New Zealand and overseas."

The company’s two software products are Gentrack Velocity, a billing product for energy and water utilities, and airport management system Airport 20/20. The products had originally been developed by Talgentra, an Auckland-based company that was sold to Australian metering company Bayard and ANZ Capital in 2009.

Clifford and executive director James Docking, who has run the Gentrack business since 1995, teamed up to buy Talgentra in 2012. Gentrack has 150 utility and airport customers in 20 countries, and employs 180 people in offices in Auckland, Melbourne and London, according to its statement. Sales in the 12 months ended Sept. 31, 2013, were $40 million, generating a profit of $6.6 million.

The retail offer, which is open to the clients of participating brokers, opens on June 9 and closes on June 20, with listing on the NZX and ASX expected on June 25.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:


Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news