Eroad to list on NZX

Auckland technology company eRoad plans to list on the NZX by mid-August and has set its sights on raising $40 million of new capital from its initial public offering.

ERoad, which employs 120 staff, said it would issue its prospectus in about two weeks.

ERoad was founded in 2000 and sells hardware and software that can be used to monitor commercial vehicles and collect road-user charges electronically, replacing paper-based systems.

Its technology is used to collect about a quarter of road-user charges from heavy vehicles in New Zealand and has also been sold in Australia and in Oregon in the United States.

First NZ has been appointed lead manager for the float and Deutsche Craigs the co-manager.

Although eRoad's IPO coincides with a spate of new technology listings, chief executive Steven Newman said it had been on the cards for two years and was not a "spur of the moment decision".

"Becoming a listed business was inevitable because of our business model and we are an extremely well-prepared business. We are already a well-regulated business because of the service we deliver, which is determining road-user charges and then receiving those payments and paying those to regulators," he said.

"For us to be a listed business, showing we are very transparent and held to a higher standard, is quite a logical step for us." Newman said the extra capital would help the firm capture the "significant global opportunity that we have".