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Vista Group Launches Initial Public Offering

Vista Group Launches Initial Public Offering

4 July, 2014 - Vista Group International, a New Zealand-head quartered global provider of cinema management, film distribution and customer analytics software, has today registered a prospectus to raise $40 million in new capital and seek a listing on the NZX Main Board and a secondary listing on the official list of ASX Limited.

The IPO comprises the issue of up to 19.0 million new ordinary shares and the sale of 22.4 million existing shares, representing an indicative total offer size of $86.9 million to $100.3 million. After dilution, existing shareholders will retain between 45% - 49% shareholding in the Company post the IPO.

The price range of the shares in the IPO will be $2.10 to $2.70 per share, placing an indicative market capitalisation of the company at $172.6 million - $208.4 million, which implies a FY15 Price/NPATA multiple of 20.2x – 24.4x.

Proceeds from the offer will be used to repay debt associated with the acquisition of stakes in data analytics and campaign management software provider, Movio, and film distribution software supplier MACCS, as well as fund the increase in shareholding to controlling positions in the two companies. The proceeds will also support the expansion of Veezi, a cloud based product for the independent cinema circuit market, and provide capital for future acquisitions and developments.

Chairman Kirk Senior says: “The Group’s flagship company, Vista Entertainment Solutions ‘VES’, today holds 37% global market share of the large cinema circuit sector (where exhibitors operate 20 screens or more), and management estimates that it processes more than one billion cinema tickets every year.

“Profitable since 1996 VES has realised stable year-on-year revenue growth. Since 2013, it has secured 40 new customers, including the world’s largest cinema exhibitor, Regal Entertainment Group, which operates 575 locations in the United States.

“VES’s success has created the foundations for Vista Group, with a clearly defined strategy in an industry where we have a great deal of experience and connections, to become a much broader film industry software company.

“This has already started with recent investments in data analytics (Movio and Numero), the development and deployment of our cloud-based SaaS software for the small circuit market (Veezi) and film distribution software (MACCS),” Senior adds.

The Vista Group generates revenue from licencing of software products, maintenance fees, monthly subscription fees, implementation and other services. Pro forma Group revenue of $38.7 million in FY 2013 is forecast to reach $49.9 million this year and $61.5 million in FY 2015.

Due to 2014 being a substantial investment year, earnings are forecast to be roughly in line with 2013. However the Group forecasts a return to bottom line growth from its existing businesses in FY 2015.

Founder and chief executive officer Murray Holdaway says the company has built a global reputation based on innovation, underpinned by a culture of staff loyalty and dedication to the customer.

“As a business, we have come a long way but at the same time Vista Group has a great deal more growing to do. The global cinema industry derives revenue of approximately $46 billion, with more than six billion patrons visiting a cinema each year. Between 2012 and 2017 the total number of movie screens globally is forecast to grow 4.4%, and 21.1%[1] within developed and developing cinema markets respectively.

“Mature markets still present growth opportunities, as more and more operators require higher-quality software to cater for the enhanced food and beverage offerings, mobile sales channels and sophisticated loyalty management systems,” Holdaway says.

“Cinema does face increasing competition from a wide variety of entertainment offerings, but that increases the demand for sophisticated software solutions. And we are well placed to take advantage of these changes,” he says.

A copy of the Investment Statement and the Prospectus can be accessed from: www.vistagroup.co.nz

The Group has a history of paying dividends, but the Board has chosen not to pay a further dividend until at least 2016, but instead to use the available capital to execute on growth strategies.

The Vista Group Board comprises chairman Kirk Senior, executive director and founder Murray Holdaway, executive director Brian Cadzow and independent directors Susan Peterson and James Ogden.

Indicative Key Dates


Prospectus registered 4 July 2014
Final Price announced 16 July 2014
Offer opens 17 July 2014
Broker Firm Offer closes (12.00pm) 1 August 2014
Allotment Date 8 August
Expected commencement of trading on the NZX Main Board and ASX 11 August 2014
Important Notice

The offer of shares in Vista Group International Limited (“Vista”) is made on the terms and conditions set out in the Investment Statement and the Prospectus for the initial public offering of ordinary shares (“Shares”) in Vista.

None of Vista or the existing shareholders guarantees the Shares. An application has been made to NZX Limited ("NZX") for permission to list Vista and to quote the Shares on the NZX Main Board, and all requirements of NZX relating thereto that can be complied with on or before the date of this announcement (being 3 July 2014) have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement. The NZX Main Board is a registered market operated by NZX, which is a registered exchange, regulated under the Securities Markets Act 1988.

ENDS

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