Gentrack to join NZX, unveils $101.8m IPO
Auckland software firm Gentrack will join the NZX in a month after announcing a plan to raise up to $101.8 million from its initial public offering.
It should be the largest of two share offers unveiled today. This morning, travel software company Serko said 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 existing 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, but 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 wanted 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 employs 191 people and turned over $40.6m in the year to March. Sales were only marginally up on the previous year's revenues of $40.1m, but its average growth over the past five years has been 14.2 per cent and it forecast 10 per cent growth this year.