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.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

'Irregular Accounting': Voluntary Suspension Of Fuji Xerox Govt Contracting

This suspension gives the Ministry of Business, Innovation, and Employment time to understand the full implications of the report from FUJIFILM Holdings into irregular accounting practices at FXNZ. More>>

ALSO:

MPI: Cow Disease Detected In NZ For First Time

MPI is responding to the detection of the cattle disease Mycoplasma bovis in a dairy herd in South Canterbury... The disease is commonly found in cattle globally, including in Australia, but it’s the first detection of it in New Zealand. More>>

South Island Flooding: Focus Moves To Recovery

As water recedes throughout flood-impacted areas of the South Island, Minister of Civil Defence Nathan Guy has praised the efforts of those who were involved in the response to the flooding... More>>

ALSO:

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fund For PPP Plans: Govt Embraces Targeted Rates To Spur Urban Infrastructure

The government's latest response to the Auckland housing shortage will see central government and private sector firms invest in 'special purpose vehicles' to fund essential roading, water and drains that Auckland Council can't fund without threatening its credit rating. More>>

ALSO: