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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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