Jade spin-off set to raise capital

ROB O'NEILL
Last updated 16:00 28/11/2012

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New Zealand security and risk management software company Wynyard is likely to seek capital towards the end of next year, chief executive Craig Richardson said today.

Richardson said the board of Wynyard, which was spun out of Christchurch software icon Jade in March, has discussed with management about what was needed to grow the company internationally.

Richardson said waiting until late 2013 to raise fresh capital - although he wouldn't specify if that would be through listing the company - gave Wynyard time to continue to build sales, particularly in emerging areas such as threat and risk management, investigations, anti-money laundering and law enforcement.

In the meantime, it was fielding persistent calls from merchant bankers keen to assist in any efforts to realise value.

Jade bundled up some of its existing products into Wynyard this year, and the company has since added to its portfolio through further development.

Wynyard claims 2000 of the world's best known companies and government agencies as clients.

Richardson said he was aware of the "interesting environment" in New Zealand, with rumours about further public listings following the Moa Beer offering this month. Moa's share price has risen 5c since listing at $1.25 per share on November 13.

He said such offerings appear to be fully valued with demand coming from fund managers seeking to address portfolio imbalances.

Orion Health has been mentioned as one potential listing candidate, but merchant banking sources have said up to six significant listings could be in the wings.

Early last month Orion founder, managing director and majority shareholder, Ian McCrae, told Computerworld that Orion's board has been contemplating going public for the last three years.

"Once you get larger, listing becomes more and more sensible," he said.

Orion posted almost $100 million in revenue last year according to its annual report. The company says its current rate of growth could see it turn over $1 billion annually by 2020.

McCrae says 95 per cent of the company's present revenue is derived from exports.

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- BusinessDay.co.nz

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