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Home / Business / Companies / Energy

Stock Takes: Our IPO winners and losers

NZ Herald
13 Nov, 2014 08:30 PM4 mins to read

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Serko chairman Simon Botherway. Photo / Chris Gorman

Serko chairman Simon Botherway. Photo / Chris Gorman

Opinion by
Nine IPOs in past seven months encounter mixed success in bumper year

It's shaping up to be another bumper year for the New Zealand sharemarket, with the NZX 50 up more than 14 per cent and trading at record levels.

But the nine initial public offers (IPOs) that have taken place since April are a mixed bag when it comes to share price performance.

Four of those newly listed firms - technology developers Serko, ikeGPS and Gentrack, as well as fruit marketer Scales Corporation - are trading below their offer prices.

As investment bankers rush to get a few more IPOs in the bag before Christmas, Stock Takes thought it an opportune time to evaluate the performance of the companies that have gone public this year.

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Vista Group ... 55.3%

Vista Group was the second-to-last company to IPO during the rush of listings that happened between April and August, but it's been the best share price performer by far, surging more than 55 per cent in just over three months. The developer of cinema management software, founded in 1996, was viewed as one of the more well-established, safer bets among the numerous tech IPOs of mid-2014.

Genesis Energy ... 37.4%

Genesis was the final cab off the rank in the Government's state asset sell-down programme and the first New Zealand IPO of 2014.

Like those of other electricity generators, its shares got a mighty boost from National's decisive victory in the September 20 election, which swept away regulatory risk associated with Opposition party policies.

The company beat prospectus forecasts when it reported its annual result in August, while its shares have also been bolstered by yield-hungry investors' appetite for dividend-paying stocks.

Eroad ... 36.7%

Eroad's ballooning share price prompted a "please explain" notice from sharemarket operator NZX last week. In response, the transport software firm said it was in compliance with its continuous disclosure requirements and unaware of any specific reasons for the gains. Eroad will report its half-year result on November 25.

Intueri Education Group ... 16.2%

Shares in private training provider Intueri hit a record close of $3.30 in September, a 40 per cent gain on the IPO price, but have since come off the boil. Intueri beat prospectus guidance when it reported half-year financial results in August, which included a more than tripling of profit.

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Metro Performance Glass ... 14.7%

Much was hanging on glass supplier Metro when the company floated in late July. Three of the four previous IPOs - ikeGPS, Scales Corporation and Serko - had fallen below their offer prices on their first day of trading, which is never a good look. Fortunately Metro shares didn't go backwards and they've made modest gains since the float, hitting a record close of $2.01, 18 per cent above the offer price, on October 28.

Scales Corp ... -10%

Scales' shares briefly rose above the offer price on their first day of trading but it's been mostly downhill for the fruit marketer's stock ever since. The company, whose shares dipped to an all-time low of $1.35 this week, affirmed full-year prospectus forecasts when it reported its interim result in late August. Half-year profit fell 22 per cent to $20.6 million, with the company blaming the drop on lower apple prices and listing costs.

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Gentrack ... -12%

Gentrack's stock gained ground in the weeks following its June 25 listing, but plunged below the offer price on August 1 when the firm downgraded full-year profit guidance by up to $1.2 million from its prospectus forecast because of delays with major customer contracts. The Financial Markets Authority this week said the firm's prospectus did not contain any misleading or untrue statements, but Gentrack could have been clearer when outlining "certain risks" in the offer documents.

ikeGPS ... -13.6%

IkeGPS shares rallied this week after the firm announced the appointment of two tech veterans, including former Apple executive Richard Mander, to its management team. But it wasn't enough to take its shares back above the IPO price, a threshold the stock has languished below since ikeGPS went public in July.

Serko ... -13.6%

Serko was the first technology firm to list in 2014 and shareholders in the travel-booking software developer have been on a wild ride. Its stock rose above the offer price briefly on the day of the firm's NZX debut. However, its shares went south before the closing bell and remained below the offer price for months. Serko shares rose back above the IPO price in late September, but it was a short-lived recovery.

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