IkeGPS shares debut at discount

TOM PULLAR-STRECKER
Last updated 18:19 23/07/2014
ikegps, Leon Toorenburg
JOHN NICHOLSON/Fairfax NZ

IKEGPS: Executive director Leon Toorenburg with a small handheld GPS surveying unit, right, which the firm exports around the world.

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Shares in new NZX-listing ikeGPS have edged down after debuting today at a 10-cent discount to their $1.10 offer price.

Shares in the technology company closed at 99c, recovering from their intra-day low of 90c.

Chief executive Glenn Milnes said it would have been nice if the shares had traded up straight away as the company was conscious of creating value for its shareholders, but it was the start of a long process.

IkeGPS raised $25 million of fresh capital through the initial public offer (IPO) that valued the Wellington business at $55m. 

This evening, the company's market valuation - based on its share price - was $49.6m.

Milnes said ikeGPS' first results as a listed company, to be published in October, would be for the six months to September, but he hoped it would be able to update shareholders on individual customer wins before then.

It aims to triple its sales to $6.5m this year.

"We have a number of opportunities in the pipeline," he said.

The company operated at the intersection of the mobile and geo-spatial industries, he said, making devices that could be used by utilities to plot and manage their assets.

Late last year it signed a deal with United States industrial giant General Electric which agreed to resell its devices under its own name.

It also has a partnership with In-Q-Tel, a company with links to the US Central Intelligence Agency, that was established to encourage the creation of technology of use to the US military.

IkeGPS chairman Rick Christie said the new capital would help build ikeGPS' sales and marketing capability and extend its product range.

Yesterday the company announced three new staff in the US and that it had appointed Fred Lax, a former boss of US$1 billion ($1.2 billion) Nasdaq-listed company Tekelec, as an additional independent director.

Lax is also a former vice president of telecommunications equipment giant Lucent, now part of Alcatel-Lucent.

NEW BLOOD

How the newest NZX tech listings have fared:

(Date listed / Business / Market capital/ Movement from issue price)

* ikeGPS

July 23 / Asset management / $48m / down 14 per cent

* Serko

June 24 / Travel software / $56m / down 18 per cent

* Gentrack

June 23 / Business software / $185m / up 6 per cent

* Wynyard

July 2013 / Security software / $232m / up 74 per cent

* SLI

May 2013 / E-commerce software / $86m / down 5 per cent

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