Jasons $3.6m share float fully subscribed

Travel media company Jasons yesterday said its $3.6 million share float had closed fully subscribed.

The 7.2 million new shares would start trading on the New Zealand alternative exchange at 50c each on June 30.

Chief executive John Sandford said he was pleased the offer had been taken up by a wide range of shareholders.

"Even more exciting for us is that a significant portion of the new shareholders are actually customers of Jasons," he said in a statement.

Mr Sanford would retain a 36.5 per cent holding, private investors would still hold 21.2 per cent, while 42.3 per cent of the firm was offered in the float.

Jasons provides travel information to visitors to New Zealand, Australia and the South Pacific Islands either through its 35 different publications or the internet.

The company said its recapitalisation would reduce debt servicing costs while releasing capital for development opportunities such as growth in brochure distribution and online publication.

The gross dividend yield for the first year is expected to be 9 per cent.

In the March year, it generated $9 million in revenues but had a net loss of $125,000. The company has had revenue growth over the past five years but has incurred some heavy losses, which it blamed on its expansion into Australia.

The Australian operation was now trading profitably, it said.

At the end of the March 2005 year, Jasons had debt of $7.7 million, and shareholders funds of $5.4 million.

In its prospectus Jasons said it is expecting strong growth in the next few years from new publications and growth in core activities.

It is projecting revenue to grow to $12.1 million in the March 2006 financial year, with a net profit before listing costs of $422,000.

- NZPA