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

 


Vista shares priced at $2.35, raising $40 mln fresh capital

Vista shares priced at $2.35, raising $40 million in new capital

By Suze Metherell

Jul. 17 (BusinessDesk) - Shares of Vista Group International will sell for $2.35, towards the lower end of the indicated price range, as the cinema software developer and film distribution company looks to raise up to $40 million of new capital in a drive for international growth.

The company will sell 58 million new shares and the existing owners will sell down 22 million of their own, to retain a 47 percent stake, taking the total capital raise to $92 million after the price was set in a bookbuild process for institutional investors and retail broking firms, Auckland-based Vista said in a statement. The price is towards the middle of the $2.10 to $2.70 price range given in the prospectus earlier this month. It gives the company a market capitalisation of $188 million, valuing it about the 60th biggest company on the NZX All Index.

"At this price, the offer was more than two times covered - showing a strong level of support from investors," chairman Kirk Senior said. "In particular, they have demonstrated confidence in our management team and our strategy to become a broader global film industry software company."

Of the $40 million in new funds raised, Vista intends to spend $9.3 million exercising an option to acquire a further 25 percent stake in MACCs, giving it 50 percent of the largest provider of movie distribution software outside the US. Vista will also spend $4 million to take the remaining 43 percent stake in Virtual Concepts, which owns Movio, a marketing data and campaign management platform for cinemas, and has set aside a provision of $4.6 million if the company meets earn-out targets.

Some $2.6 million of new capital will be spent on Numero, a new venture in the data analytics field, and $3.9 million on offer expenses.

Unlike some other high-tech companies that are forecasting losses in a push for global growth, Vista expects to be profitable, though it doesn't plan to pay any dividends for at least the next two years.

"The group has a history of paying dividends, however at this stage we do not intend to pay a dividend until at least 2016 as we focus our capital on accelerating our software and data analytics growth within the film industry," chairman Kirk Senior said in a letter to investors in the company's prospectus.

The freeze on dividend payments implies Vista will retain between $2.4 million and $4.05 million in 2015, which would have been set aside for investors based on a dividend policy of distributing between 30 percent and 50 percent of profit. The company's existing shareholders have been paid dividends of $10.4 million between 2009 and 2013 on profit of $18.5 million, and have taken another $3.5 million distribution for the 2014 year, which is forecast to deliver profit of $3.4 million.

The prospectus shows 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 are expected to 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.

The local stock market is experiencing a flurry of listings after it got a shot in the arm from the government's partial privatisation last year. Last month, Gentrack Group, the utilities and airport software provider, and Serko, the travel booking system company, debuted. Next week, IkeGPS Group, which sells a range of portable measuring devices, is due to list. Other upcoming July listings include Scales Corp, the fruit packager and exporter, and Metro Performance Glass, New Zealand's largest glass maker.

The retail offer opens today and runs through to Aug 1, with Vista expecting to debut on the NZX on Aug 11.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news