Vista Group International, the cinema software and data analytics company, has been issued a please explain by NZX regulators after its stock gained 24 percent since the start of the month.
The Auckland-based company was asked by NZXR to confirm it was complying with listing rules given the stock's 62 cent gain to trade at $3.20 this morning from $2.58 on Sept. 3. Under continuous disclosure rules listed companies must inform the market of all price sensitive events as soon as possible.
The stock recently traded at $3.10, while on the ASX, where it is dual-listed, the shares were unchanged at A$2.42.
Vista director Brian Cadzow, in a written reply, said the company complies with NZX and ASX listing rules, without offering any further explanation behind the gain in share price.
The company debuted on the bourse in mid-August, raising $92 million in an initial public offer, which saw existing owners pocket $51.7 million while retaining a 47 percent stake. The remaining $40 million in new capital was raised to repay debt, fund acquisitions and drive international growth.
The stock has gained 36 percent from its IPO price of $2.35. The local market saw a flurry of listings in the first 8 months of the year, particularly from the tech sector. Of the nine companies which have listed on the mainboard so far this year, Vista is one of five which are trading above its IPO price.
Unlike some other high-tech companies that are forecasting losses in a push for global growth, Vista expects to be profitable, though it has suspended its dividend plan for at least the next two years. Forecast revenue in the current financial year is expected to grow to $49.9 million and again to $61.5 million in the 2015 financial year, to produce forecast earnings before interest, tax, depreciation, amortization and of $13.2 million and net profit after tax of $8.1 million.