Eroad registers IPO prospectus, expects shares trading to begin 15 August

Eroad has registered a prospectus for an initial public offering (IPO) of ordinary shares in the company.

The offer is expected to raise up to $40 million of new capital based on the indicative price range of $3.00 to $3.80 per share, for between 10.5 million to 13.3 million shares, which will also make the company’s market capitalisation $180 to $228 million on listing.

Existing Eroad shareholders have offered to sell shares comprising up to 5.1 per cent of those currently on issue, though Steven Newman, CEO and largest shareholder, and each of the directors have chosen to retain their existing shareholdings.

The final offer price is expected to be set on 29 July at the completion of a bookbuild involving New Zealand brokers and institutional investors. Shares are expected to begin trading on the NZX Main Board on 15 August.

Eroad CEO Steven Newman said, “An IPO has been a long standing part of the company’s plan and now is the right time because we have achieved the milestones we set for ourselves. We are confident that we have the ability to execute our growth strategy.

“In the year to 31 March 2014, EROAD was operating cash flow positive and profitable. Eroad’s transition to a publicly-listed company represents the next step on its path to becoming a global technology leader,” he said.

The lead manager for the offer is First NZ Capital. Deutsche Craigs is the co-manager for the offer.

There will be no public pool. Interested parties should contact their NZX Firm, an authorised financial advisor, the lead manager or the co-manager.

The prospectus and the investment statement for the offer are available here.

Copyright © 2014 IDG Communications, Inc.

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