Vista shares debut at a premium
Shares in Auckland cinema software company Vista climbed 4.3 per cent above their $2.35 offer price in early-afternoon trading today.
Vista raised $40 million through its sharemarket float and its existing shareholders cashed-out $52m by further selling down their stake in the business.
Chairman Kirk Senior said the transition to a publicly-listed company was an important step toward the company growing and diversifying earnings "beyond the film exhibition sector and into the broader film industry".
Vista sells software to manage all the key functions involved in running cinemas, including ticketing. Its software is now used by 3000 cinemas in 60 countries. It estimates its software is used to issue about 1 billion cinema tickets each year.
Chief executive Murray Holdaway said that when he founded the company 15 years ago, he never anticipated it would become publicly-listed. The process of listing had been longer and more difficult than he had expected, but had been a "valuable learning experience", he said.
He estimated Vista had a 37 per cent share of the global market but could increase that to 50 per cent.
"We've just got so much more we can achieve," he said.
"We have a great deal more growing to do . . . not only in developing cinema markets such as China, Brazil, Russia and India, but in mature markets, where the total number of screens continues to grow."
Vista's international focus had been one of the secrets to its success, he said.
The company has forecast its revenues would be $61.5m next year, a 23 per cent increase on its forecast for 2014, and that its profits would rise from a forecast $3.7m this calendar year to $9.1m in 2015.
The company employs 250 staff at its offices in Auckland, the United States, Britain, Holland, Australia and China. A dividend of $3.5m was paid to shareholders before the listing and it is not expecting to pay a further dividend this year or next.
WHERE TECH LISTINGS STAND
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Serko - listed 24/6/14 - Travel software - issue price $1.10 - now 90c - down 22 per cent
Gentrack - listed 23/6/14 - Business software - issue price $2.40 - now $2.24 - down 7 per cent
Wynyard - listed 19/7/13 - Security software - issue price $1.15 - now $1.90 - up 60 per cent
SLI - listed 31/5/13 - E-commerce software - issue price $1.50 - now $1.35 - down 11 per cent
Vista - listed 11/8/14 - Cinema software - issue price $2.35 - now $2.42 - up 3 per cent