Wherescape shelves IPO plans

Wherescape chief executive Michael Whitehead at the company's Wyndham Street Office. Photo / Chris Gorman

Data warehousing software provider Wherescape has shelved its plans to carry out a stock market listing, according to market sources.

The Auckland-based company -- whose customers include Air New Zealand, Sky City Entertainment, ASB, BNZ and the Auckland District Health Board -- had been planning an initial public offer (IPO) that would raise $40 million and value the business at between $70 million and $90 million, according to an Australian media report.

But local market sources say the offer, which was never officially announced, was pulled due to a lack of interest from fund managers who have already had the option of investing in a number of software-related sharemarket floats this year.

Seven technology companies -- including Vista Group, Serko, Gentrack and Eroad -- have listed on the NZX and NZAX since June.

"A portfolio manager can't afford to have a portfolio stacked up with companies are making losses for a few more years ... you've got to be first to the market in this area," said one investor, who requested anonymity.

Another market source said Wherescape had been considered too early stage and "too pricey".

Founded in 2002 by Michael Whitehead and Wayne Richmond, Wherescape develops data warehousing products that allow organisations to store, organise and access large volumes of information.

Whitehead said an IPO was still an option the board was considering but a float was unlikely to take place this year.

"We're looking to pick our time, and whilst we have had an injection of capital through Pioneer a while back [$10 million], we may still look at the share market as an option for additional funding," he said. "We continue to run very profitably and that enables us to be masters of our destiny as to our timing."

With the general election out of the way, investment bankers will be pushing hard to get the IPO train to rolling again.

Other listings in the works include APN News & Media's plans to float its New Zealand Assets, which include the New Zealand Herald and The Radio Network, and medical software developer Orion Health.

Aged care operator Oceania Group, as well as Hercules -- a proposed merger of 19 privately owned New Zealand retirement villages -- have also flagged IPO plans.

The investor said Wherescape's shelving of its listing plans did not mean other companies looking to go public would suffer the same fate.

APN's New Zealand assets and Orion were likely to become components of the NZX50 index, which would increase demand for those offers, the source said.