Steven Newman, chief executive of ERoad. Photo / Steven McNicholl
Steven Newman, chief executive of ERoad. Photo / Steven McNicholl
Shares in software developer Eroad opened up 11 per cent this morning following the company's sharemarket debut.
The Auckland-based firm, whose technology is used by transport firms for managing and paying road user charges and tracking fleets, raised $40 million in new capital through its NZX main board listing, whichwill be used to fund growth, especially in the United States, and potential acquisitions.
Eroad shares, which were issued at $3 - the bottom of a proposed $3 to $3.80 indicative price range - opened at $3.32, an 11 per cent premium to the offer price.
Eroad began commercial operations in 2007 and was the first company to provide a nationwide GPS-based road user charge system in New Zealand. It made a profit of $2.9 million in the year to March 31 on sales of $10 million and has forecasted revenue to increase to $19 million in 2015 and to $34 million in 2016.
Eroad has forecasted a loss of $1 million in 2015 as a result of listing costs of $2 million and expects a $5.5 million profit in 2016.
The offer was managed by First NZ Capital and Deutsche Craigs.
