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

 


IkeGPS shares first trade at $1, shedding 9.1% vs. IPO price

IkeGPS shares first trade at $1, shedding 9.1% from IPO price

By Suze Metherell

July 23 (BusinessDesk) - Shares of IkeGPS Group fell 9.1 percent in their NZX debut after the portable measuring devices maker raised $25 million in new capital to build a sales force and develop its products.

The shares first traded at $1, compared to its initial public offer price of $1.10, valuing the company at $50.1 million. The Wellington-based company sold 22.7 million new shares, bringing the total on issue to about 50 million, after withdrawing plans for existing shareholders, which include Jenny Morel’s No 8 Ventures and business partner General Electric, to sell $6 million of existing shares. There was no public pool.

IkeGPS is forecasting a three-fold increase in revenue to $6.5 million this financial year, rising to $14.3 million in 2016, largely due to a growth in GE MapSight product sales, while its net loss will widen 133 percent to $5.33 million this year, and further to a loss of $5.8 million in 2016, according to its prospectus. Expenses are set to triple this year to $11.5 million and grow further to $19.6 million in 2016.

"Ike is currently a loss-making business that is not anticipated to make a net profit in the prospective period as the business invests in growth," the company said in its offer documents. "Although Ike has been operating since April 2003, it is only recently that Ike's current business model has been developed so investors should treat Ike as an early-stage growth company."

GE, which Companies Office records show holds a 5.9 percent stake in the company, agreed to sell IkeGPS's electricity market asset management product as the GE-branded MapSight. The US market for the MapSight could be worth US$700 million. While its Spike measuring product, which employs laser, camera and software in a mobile phone will be targeted at the architecture, engineering and construction sectors.

IkeGPS developed the products with US Army Corps of Engineers, US intelligence agency developer IN-Q-Tel and software providers for electricity units. The company expects to ship 289 MapSight units this year, and a further 626 in 2016, while Spike unit shipped will rise to 2,533 this year and 2,712 the following year.

"Ike's target markets are larges, its current penetration is low and the business is highly scalable due to a business model that features high gross margins and low marginal cost of sales," the company said.

The company expects to grow its staff to 84 people by 2016, from 59 this year, of which almost two-thirds will be New Zealand-based while the rest will be in the US.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news