Vista Entertainment Solutions the latest tech firm to IPO
By Suze Metherell
Jul. 4 (BusinessDesk) - Vista Entertainment Solutions, a cinema ticketing software developer and film distribution company, is looking to raise up to $100.3 million in its float next month, but won't pay any dividends until 2016 as it uses capital raised to pursue international growth opportunities.
The Auckland-based company will offer between 37.2 million and 41.4 million of shares at an indicative price range of $2.10 to $2.70, seeking to raise $40 million in new equity, with existing shareholders selling down but retaining between 45 percent and 49 percent, according to its prospectus lodged with the Companies Office.
The new capital will be used to repay debt and fund the acquisition of a controlling stake in two investments, Movio and MACCS.
Founded in 1996, Vista employs 250 staff in New Zealand, Australia, the US, China, UK and the Netherlands.
The company currently has a 50 percent stake in MACCs, the largest provider of movie distribution software outside the US, but plans to exercise the option to acquire a further 25 percent in September. Vista will also use the new capital to take the remaining 43 percent stake in Virtual Concepts, which owns Movio, a marketing data and campaign management platform for cinemas.
Existing shareholders will sell down up about 37 percent of their stake and their remaining shares will be held in escrow until 2016, after the company's 2015 results. Eligible employees will be gifted $1000 worth of shares, and an allocation of shares at a 20 percent discount will also be offered to employees. If fully subscribed the share offer will make up 0.5 percent of the total share capital.
The prospectus show Vista's recurring revenues have doubled since 2009, with turnover in the 2013 financial year standing at $38.7 million to produce earnings before interest, tax, depreciation and amortisation of almost $9 million. Forecast revenues in the current financial year grow to $49.9 million and again to $61,5 million in the 2015 financial year, to produce forecast ebitda of $13.2 million and net profit after tax of $8.1 million.
Based on the lower and upper bounds of the valuation range, those projections give the company an enterprise value to ebitda ratio of between 15.7 and 19.6 times in 2014 and between 11.1 and 13.8 times in 2015.
The final price will be announced on July 16, with the offer opening the following day and running to August 1. The company expects to list on the NZX on August 11.