July 29, 2014 / 4:02 AM / in 3 years

NZ's ERoad prices shares in IPO, plans listing

WELLINGTON, July 29 (Reuters) - New Zealand logistics software company ERoad Ltd is raising NZ$39.9 million ($34.2 million) in new capital through a sale of new shares to fund expansion in new markets, the company said on Tuesday.

It said 13.3 million new shares will be offered, with existing shareholders selling just over 2 million shares in an initial public offering (IPO) at NZ$3.00 each.

The price, set after a bookbuild with institutional investors and broking houses, was at the bottom of an indicative range of NZ$3.00 to NZ$3.80 a share.

The total offer is worth NZ$46.1 million, and gives the company a capitalisation of NZ$180 million.

ERoad produces software used by logistics firms and fleet managers. Its offer documents forecast revenue of about NZ$19 million in the current year, rising to NZ$34 million in 2016.

It said the proceeds will be used to repay debt and fund growth in the United States.

The company aims to list on the New Zealand stock exchange on Aug 15.

First NZ Capital is the sole lead manager for the offer with Deutsche Craigs the co-manager.

The offer is the seventh IPO in nearly three months, with a flurry of small and medium companies looking to take advantage of strong market conditions and investor enthusiasm that followed the government’s partial privatisation of Genesis Energy Ltd in April.

$1 = 1.1697 New Zealand Dollars Gyles Beckford

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