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

 


Serko first trades at $1.13 in NZX debut, for 2.7% gain

Serko first trades at $1.13 in NZX debut, for 2.7% gain from IPO

By Jonathan Underhill

June 24 (BusinessDesk) - Shares of Serko, the online business travel booking company, rose 2.7 in their NZX debut after closing the retail portion of its initial public offering early because of strong demand.

The shares first traded at $1.13 compared to its IPO price of $1.10. Serko sold 5.5 million of new shares at $1.10 apiece, raising some $17 million, and a further 4.5 million existing shares worth $5 million will be sold into the offer. Founders Darrin Grafton and Bob Shaw will each retain about 20 percent and have agreed not to sell any more shares until two days after Serko announces its 2016 annual result.

Shaw and Grafton started a company called Interactive Technologies in 1994 and created its main Serko Online product in 2000, according to its website. This later became part of Gulliver’s Travel Group, which listed on the ASX and NZX before being acquired by Australia’s S8 in 2006, which was then swallowed up by MFS. Shaw and Grafton then purchased the Serko assets from MFS in 2007, according to a timeline on the website.

Of the $17 million raised, $11.3 million will be held to fund capital initiatives, especially targeted at its drive for growth across the Asia Pacific region, and pay for the $438,000 cost of the IPO, $3.4 million will repay bank debt and $2.3 million will repay shareholder loans, according to its prospectus lodged with the Companies Office.

Serko forecasts net cash of $9.9 million on listing, and anticipates spending $2.4 million in the current financial year and $2.5 million in the first half of the 2016 financial year.

The software-as-a-service company is forecasting losses for its 18-month forecast horizon, but chairman Simon Botherway has said he doesn't anticipate raising more funds with Serko expected to be operationally cash-flow positive by the end of 2016.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news