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

 

Testing And Decontamination: New Standard On Meth Residue

Standards New Zealand has today released NZS 8510:2017 Testing and decontamination of methamphetamine-contaminated properties ... More>>

ALSO:

Mince, Etc: US Food Poisoning Lawyer At Conference

As New Zealand chefs, food experts, and MPI debate what constitutes a cooked beef burger, leading US food safety litigator Bill Marler, who made his name prosecuting the burger company responsible for a major E. coli outbreak, is keynote speaker at the Food Integrity Conference. More>>

ALSO:

Petya: New Ransomware Campaign Hits Worldwide

A new ransomware campaign known as Petya is affecting computer networks using Microsoft Windows. It was first seen affecting systems in the Ukraine, but is quickly spreading across other computer networks in Europe. More>>

ALSO:

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO: