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

 


ERoad shares rise 11% in NZX debut after $46 million IPO

ERoad shares rise 11% in NZX debut after $46 million IPO

By Suze Metherell

Aug. 15 (BusinessDesk) - Shares of ERoad, the logistics and fleet management company, rose 11 percent on its NZX debut after its initial public offer raised $40 million in new capital to fund international growth plans.

The stock first traded at $3.32, up from its $3 offer price. It recently traded at $3.35, valuing the company at $201 million. Institutional investors picked up 70 percent of the 15.3 million shares on offer, which saw existing owners sell 2 million shares, or $6 million worth, to keep 75 percent stake in the company. There was no public pool.

Of the new capital raised, $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.

Founded in 2009, ERoad says it was the first company to provide a nationwide GPS-based road user charge system. It first turned a profit of $2.9 million in the year ended March 31, 2014, on $10 million in sales. In its July prospectus it forecast revenue to rise to $19 million in 2015, and to $34 million in 2016, but expected to post a loss of $1 million in 2015, due to $2 million in listing costs, before returning to profit of $5.5 million in 2016.

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

ERoad is the ninth company to list on the bourse this year, and follows cinema software and analytics firm Vista International Group's debut on Monday, and mobile payment app maker Pushpay's compliance listing on the NZ Alternative Index yesterday. The NZX has experienced a flurry of tech-based listings, which has been a mixed bag for investors, Gentrack Group, the airport and utility software firm, had initially traded above its offer price, but its share price dropped after it issued a profit warning, effectively cutting earnings some 32 percent, five weeks after its public float.

Other recent listings, including Serko, the travel software booking business, ikeGPS, the portable measuring app, and Scales Corp, the fruit and vegetable packaging and logistics company, have all failed to trade above their offer price. While the government's last partial privatisation, Genesis Energy, Intueri Education, the education providers, Metro Performance Glass, the glass manufacturer, and Vista have all traded above their IPO prices.

The sole lead manager for the offer was First NZ Capital, with Deutsche Craigs as co-manager.

(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