Eroad trucking on with IPO

TOM PULLAR-STRECKER
Last updated 10:24 29/07/2014

Relevant offers

Industries

NZX falls 1 per cent after Brexit result, no panic but could weaken further Investing amid Brexit: Don't try to catch the falling knight Road toll breaks for electric vehicles 'interesting question' NZX listing puts price on NZME Staff made redundant from Port Taranaki Ram-raids force dairy owners to sleep on floor of east Auckland shop Toyota New Zealand moves to electric vehicles - the used car way Gym members fume as doors shut at Hamilton Configure Express NZ cigarette plain packaging law would see Imperial Tobacco sue for compensation Japan a land of opportunities for NZ firms

Transport technology company Eroad will float on the NZX on August 15 with an initial market capitalisation of $180 million.

The valuation, decided on after a book build, is at the bottom end of its $180m to $228m prospectus forecast.

The company said there had been strong demand from institutional investors, which would take up 70 per cent of the shares on offer. There will be no public pool for retail investors who are unable to get a firm allocation from their share broker.

Eroad will raise $40m of new capital through the listing, with some of its existing shareholders using the opportunity to cash out $6.1m of their investment.

The Auckland firm employs 115 staff and makes telemetric systems that can be used to monitor commercial vehicles and pay road-user charges electronically. Its technology can also be used by trucking companies to record drivers' hours, replacing paper logbooks.

Eroad made a profit of $2.9m on revenues of $10m in the year to March, assisted by a $1.9m tax benefit.

It forecast a loss of $1m on revenues of $19m this financial year because of the $2m cost of listing, and a profit of $5.5m on revenues of $34m in 2015-16. Most of the growth would come from its existing markets in New Zealand and Oregon, chief executive Steven Newman said. 

He did not expect Eroad to pay a dividend during that period as it would reinvest any profit to grow the business. 

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content