New Zealand software company Vista Group has confirmed it is looking to list on the NZX and ASX in a float that will raise up to $100 million -- including $40 million in new capital -- and could value the company at more than $200 million.
Auckland-based Vista provides management software used by cinema operators for everything from online ticket booking and food and beverage sales to staff rostering.
The company said up to 19 million new shares would be issued in the initial public offering (IPO), while 22.4 million existing shares would be sold, taking the indicative total offer size to between $86.9 million and $100.3 million.
"After dilution, existing shareholders will retain between 45 per cent to 49 per cent shareholding in the company post the IPO," Vista said.
The company, founded in 1996, said shares in the IPO will be priced in the range of $2.10 to $2.70, giving an indicative post-float market capitalisation of $172.6 million to $208.4 million, implying a price to net profit multiple of 20.2 times to 24.4 times in the 2015 financial year.
A prospectus has been registered today, with the final pricing to be announced on July 16. A broker firm offer will run between July 17 and August 1 with the listing expected to take place on August 11.
The proceeds of the offer would be used to repay debt associated with the acquisitions of stakes purchased in Movio, a film analytics and campaign management software provider, and film distribution software developer Maccs, Vista said.
The company said the capital raised would also be used to increase its shareholding in the two firms to "controlling positions".
Additionally, the company said proceeds of the listing would help support the growth of Veezi, a cloud-based product for the "independent cinema circuit market", as well as providing capital for future acquisitions and developments.
The company said Vista Group's pro forma revenue of $38.7 million in the 2013 financial year was forecast to grow to $49.9 million this year and $61.5 million in the next.
"Due to 2014 being a substantial investment year, earnings are forecast to be roughly in line with 2013," Vista said. "However the group forecasts a return to bottom line growth from its existing businesses in [financial year] 2015."
Vista chairman Kirk Senior said the group's "flagship company" -- Vista Entertainment Solutions -- had a 37 per cent share of the global large cinema circuit sector (where exhibitors operate 20 or more screens) and the company processed an estimated one billion cinema tickets annually.
"Profitable since 1996, VES has realised stable year-on-year revenue growth," Senior said. "Since 2013, it has secured 40 new customers, including the world's largest cinema exhibitor, Regal Entertainment Group, which operates 575 locations in the United States."
Founder and chief executive Murray Holdaway said the company had a lot of scope for growth.
"The global cinema industry derives revenue of approximately $46 billion, with more than six billion patrons visiting a cinema each year," Holdaway said. "Between 2012 and 2017 the total number of movie screens globally is forecast to grow 4.4 per cent, and 21.1 per cent within developed and developing cinema markets respectively."
Vista's current shareholders include Holdaway and executive director Brian Cadzow.
The company has close to 250 staff and customers in 63 countries.