News Column

New Zealand : NZX to be joined by Gentrack

May 26, 2014

Auckland software firm Gentrack will join the NZX in a month after declaring a proposal to raise up to $101.8 million from its initial public offering.

It is supposed to be the larger of two share offers disclosed today. This morning, travel software company Serko said that it aimed to raise up to $22m from its IPO. It expects to list on the NZX a day before Gentrack, on June 24.

Gentrack's float will value its business at between $151.4m and $180.2m, depending on the price set for shares during the offer to institutional and retail brokers. There will be no public pool.

Its present shareholders will sell down their stake to about 42.5 per cent, as a result of the offer.

The IPO was an opportunity for investors who bought the company out of British private-equity ownership in 2012 to partially cash up, however should also help it win more business from large clients, chief executive James Docking said.

Gentrack's software lies "at the heart" of many utilities, such as power and water companies, and they required the reassurance a listing would provide that it would be around for the next 20 or 30 years, Docking said. The funds would also enable the company to retire its $33m debt.

Gentrack hires 191 people and turned over $40.6m in the year to March. Sales were merely marginally up on the earlier year's revenues of $40.1m, however its average growth over the previous five years has been 14.2 per cent and it forecast 10 per cent growth this year.

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Source: TendersInfo (India)