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

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news