Gentrack Group plans to raise as much as $101.8 million in an initial public offering next month, allowing existing owners to sell down their holdings and giving the utility and airport management software company funds to repay debt.
The shares will be offered at an indicative price range of $2 to $2.50, valuing the Auckland-based company at between $151.4 million and $180.2 million, according to Gentrack's prospectus. The offer will comprise 14.4 million to 18 million of new shares, raising $36 million, and 26.3 million of existing shares, raising between $52.6 million and $65.8 million.
The bookbuild, pricing and allocation will be determined on June 5 for an offer that will open on June 9 and close on June 20, ahead of an expected June 25 listing on the NZX and ASX.
After the IPO, the existing owners will hold between 41.5 per cent and 43.5 per cent of the company. Chairman John Clifford and executive director James Docking each hold 21 per cent of the company, which has a total of 21 shareholdings.
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The company's two software products are Gentrack Velocity, a billing product for energy and water utilities, and airport management system Airport 20/20. The products had originally been developed by Talgentra, an Auckland-based company that was sold to Australian metering company Bayard and ANZ Capital in 2009.
Clifford and Docking, who has run the Gentrack business since 1995, teamed up to buy Talgentra in 2012. Gentrack has 150 utility and airport customers in 20 countries, and employs 180 people in offices in Auckland, Melbourne and London, according to its statement. Sales in the 12 months ended Sept. 31, 2013, was $40 million, generating a profit of $6.6 million.
Gentrack has an implied cash dividend yield of 1.4 per cent to 1.7 per cent for 2014, rising to 4.5 per cent to 5.4 per cent in 2015, according to the prospectus. According to its forecasts, revenue rises to $40.6 million in 2014 from $40.1 million in 2013, before climbing to $44.7 million in 2015. Net profit would be $3.7 million this year and $9.3 million in 2015.