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

 


Vista shares debut at $2.40 on NZX, a 3.1% gain from IPO

Vista shares debut at $2.40 on NZX, a 3.1% gain from IPO price

By Suze Metherell

Aug. 11 (BusinessDesk) - Shares of Vista Group International rose 2.1 percent on their NZX debut, after the cinema software and analytics company raised $92 million in an initial public offering to pay existing owners and fund global growth.

The shares first traded at $2.40, after an IPO at $2.35, giving the company a market capitalisation of $191.6 million. Some $51.7 million of the funds raised went to existing owners who retained a 47 percent stake, while $40 million in new capital was raised to drive its international growth plans.

The new capital will be used to repay debt and fund the acquisition of controlling stakes in two investments, Movio and MACCS, with about $15.4 million set aside for future acquisitions and developments.

"The new capital structure will support our next chapter of growth to become the leading provider of software solutions to the wider film sector, including growing our global share of the large cinema circuit market (20+ screens)," founder and chief executive Murray Holdaway said in a statement. “We have a great deal more growing to do in the exhibition space, not only in developing cinema markets such as China, Brazil, Russia and India, but in mature markets, where the total number of screens continues to grow.”

Unlike some other high-tech companies that are forecasting losses in a push for global growth, Vista expects to be profitable, though it has suspended its dividend plan for at least the next two years. Forecast revenue in the current financial year is 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 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.

Vista is the eighth company to list on the NZX this year as the local stock market enjoys a flurry of listings, particularly of tech firms. Last month, Metro Performance Glass, New Zealand's largest glass maker, ikeGPS Group, which sells a range of portable measuring devices, and Scales Corp, the fruit packager and exporter, joined the NZX. In June, Gentrack Group, the utilities and airport software provider, and Serko, the travel booking system company, debuted. ERoad, a logistics and fleet management company, is due to float on Friday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news