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


Gentrack shares debut at $2.58 on NZX after IPO to pay debt

Gentrack shares debut at $2.58 on NZX after IPO to pay debt, allow selldown

By Jonathan Underhill

June 25 (BusinessDesk) - Gentrack Group, which develops utilities and airports software, first traded at $2.58, up 7.5 percent from the price in an initial public offering that raised funds to repay debt and allowed existing shareholders to sell down their holdings.

The company raised $36 million of new capital that will be used to repay debt taken on for its management buyout in 2014 and to cover IPO costs. At the same time, existing shareholders including chairman John Clifford and executive director James Docking raised about $63 million selling existing shares. After the sale, existing investors hold about 43.2 percent of Gentrack.

The trading debut gives Gentrack a market capitalisation of about $188 million, ranking the company between Green Cross Health and Hallenstein Glasson Holdings on the NZX All Index. The stock last traded eased to $2.55 after about five minutes of trading.

The listing comes at a rocky time for companies looking to go public. Hirepool yesterday abandoned plans for what would have been the year's second- biggest IPO on the NZX as investors baulked at the offer, while Serko slumped in its first day of trading, recovering today to trade at $1.04 compared to an IPO price of $1.10. Mobile measuring device maker ikeGPS and Scales Corp, the fruit and vegetables logistics group, both currently have prospectuses in the market and there's talk that MetroGlass, Orion Health, Vista Entertainment Solutions and Eroad are considering going public.

The Auckland-based Gentrack counts Genesis Energy, Meridian Energy, MightyRiverPower, Australia's Origin Energy and the UK's SembCorp Bournemouth Water among the electricity and water utility customers for its Gentrack Velocity billing product. Airport companies that use its Airport 20/20 management system include Auckland International Airport, Sydney Airport, Hong Kong International Airport and John F Kennedy International Airport.

The company competes with SAP and Oracle for utility billing systems and with Lockheed Martin, SITA and AirIT for airport systems, according to its prospectus. Given the share sale will leave Gentrack debt free, with a strong balance sheet, has said it would consider acquisitions of up to $20 million to add compatible software or enter new markets.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news