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

 


ERoad shares priced at bottom end of range, owners trim sale

ERoad shares priced at bottom end of range, owners sell fewer shares

By Suze Metherell

July 29 (BusinessDesk) - Shares of ERoad have been priced at $3 apiece, the bottom of its proposed range, and existing owners sold less of their holdings as the logistics and fleet management company raises $40 million in new capital to chase growth in the US.

The Auckland-based company will sell 13.3 million new shares, and existing owners will sell 2 million shares, fewer than the 2.4 million to 2.5 million flagged in the prospectus. Institutional investors will pick up 70 percent of the shares, which had been marketed in a range of $3 to $3.80. There is no public pool for next month's initial public offering, which gives the company an implied market capitalisation of $180 million.

Of the $40 million in new capital, $3 million will go to repay bank debt, with the remaining cash used to fund ERoad's growth, particularly in the US, where it launched commercial services in Oregon in April. The company has said it will look at potential acquisitions to further expand and enter new markets. ERoad's broker firm offer opens tomorrow and runs through to Aug. 12, ahead of an expected listing on the NZX on Aug. 15.

"ERoad achieving an NZX main board listing will increase transparency and credibility with government regulators in its markets and enhance Eroad's profile with customers," chief executive Steven Newman said in a statement.

Founded in 2009, ERoad was the first company to provide a nationwide GPS-based road user charge system, according to information released by the company. It first turned a profit of $2.9 million in the year ended March 31, 2014, on sales of $10 million and forecasts revenue to rise to $19 million in 2015 and to $34 million in 2016, according to the prospectus. Eroad expects to report a loss of $1 million in 2015 due to listing costs of $2 million, before returning to profit of $5.5 million in 2016. It is also predicting a drop in its retention rate, from 99.3 percent to 96.5 percent over the next two years.

The company doesn't intend to pay dividends in the near term.

The local stock market is experiencing a flurry of listings after it got a shot in the arm from the government's partial privatisations last year. Last week, ikeGPS Group, which sells a range of portable measuring devices, and Scales Corp, the fruit packager and exporter, debuted on the NZX, and Metro Performance Glass, New Zealand's largest glass maker, is due tomorrow.

Last month, Gentrack Group, the utilities and airport software provider, and Serko, the travel booking system company, debuted. Others in the pipeline include Vista Group International, a cinema ticketing and data analytics firm.

The sole lead manager for the offer is First NZ Capital, and Deutsche Craigs is the co-manager.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news