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

 


Pacific Edge, Xero slide as investors eye new listings

Pacific Edge, Xero slide as investors eye new listings

By Suze Metherell

June 24 (BusinessDesk) - Xero and Pacific Edge both fell to an eight-month low as investors freed up cash for upcoming listings by selling growth stocks.

Xero fell as low as $23 mid-morning before recovering back to $25.16. The Wellington-based cloud accounting software firm has fallen 46 percent in the past three months, from an intraday record of $45.99 in early March. Dunedin-based biotech company Pacific Edge declined 7.4 percent to an eight-month low of 75 cents and has plunged 49 percent in the past three months. Outside the benchmark index, security software firm Wynyard Group dropped 4.6 percent to $2.08.

"All the growth stocks continue to be chasing the same pool of investors with all the new listings coming on the market as well," said Bryon Burke, head of equities at Craigs Investment Partners. "The issue with the growth stocks is, what are they worth when they're coming down when there is no yield and no PE?"

"There are a lot of growth stocks around and they seem to be losing favour at this stage and there are more coming onto the market and that seems to be where the money is heading, to the new ones," Burke said.

Serko debuted on the NZX today at $1.10 before sliding 9 percent to recently trade at $1. The online business travel booking company, raising some $17 million as it sells 15.5 million of new shares at $1.10 apiece, and a further 4.5 million existing shares worth $5 million will be sold into the offer. The Auckland-based company closed its public pool early and said those investors may receive fewer than the number of shares requested because of strong demand.

Gentrack, which develops utilities and airports software, lists tomorrow in a $99.1 million initial public offer, selling shares at $2.40 apiece.

Other companies set to list on the NZX include, Scales Corp on July 26, while IkeGPS released its prospectus yesterday.

Meanwhile Hirepool, which was due to list on the NZX stock exchange next month has, pulled its listing after 64 percent owner, Australian private equity firm Next Capital, has abandoned plans to sell shares in a $262 million initial public offering after concern from institutional investors that on market support for shares of the unprofitable equipment rental company wouldn't be strong enough.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news