Eroad trucking on with IPO

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

Relevant offers

Industries

Budget reveals plans for locks, lights for repeat burglary victims Budget 2017: Family income and tax package - by the numbers Trade Me removes Ed Sheeran and Harry Styles tickets Budget 2017: Tax and housing assistance to boost family incomes in Joyce's first Budget Budget 2017: a missed opportunity to help SMEs, technology NZ's bulging prison population 'unprecedented': Budget Metro Performance Glass gets boost from building boom, breaks glass record Budget 2017: Paying down debt and rationing lollies Queenstown bridge pipes on Kawarau Falls Bridge to now cost $7.3 million Budget 2017: Radio NZ funding freeze comes to an end

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