Wynyard Group, the local spy software developer, fell 4.3 percent in its NZX debt, having listed at the $1.15 offer price.
The shares recently traded at $1.10, valuing the company at $112.8 million, with about 370,000 shares changing hands on turnover of some $425,000. That’s just inside the indicative range of between $1.10 and $1.65 in the firm’s prospectus.
The Auckland-based company raised $65 million in an initial public offer, and more than 60 percent of the offer shares were allocated to Australasian institutions. Major investors include Milford Asset Management, Salt Funds Management, Harbour Asset Management, AMP Capital Investors, Zeus Management and Sam and Gareth Morgan, it said.
“Prior to the IPO we received many approaches from savvy multi-nationals wishing to acquire Wynyard Group’s business and intellectual property,” managing director Craig Richardson said in a statement. “One of the most rewarding outcomes of this IPO is that kiwis recognised Wynyard’s global achievements to date, our future potential and the importance of this hi-tech company to New Zealand.”
Wynyard, which was spun out of Jade Software, is the latest listing for the NZX, which has already added state-controlled power company MightyRiverPower, and search engine developer SLI Systems. Dairy processor Synlait Milk will join the bourse next week.
The funds raised will go towards the $23.6 million price tag on the intellectual property rights of Wynyard’s intelligence products, which are owned by Jade. Some $10 million will repay intercompany debts and a $2 million loan Jade wrote to fund Wynyard’s investment. Another $3.6 million is expected to cover the listing costs, leaving $25.8 million to fund its growth.
The company expects to post a net loss of $10.1 million this calendar year on sales of $21.5 million, and a loss of $10.4 million on sales of $27 million in 2014.
Richardson said the company had a “favourable” first half acquiring new contracts in New Zealand and expanding its customer base in the UK and United Arab Emirates. It also boosted capability in the US.
“Recent world events have only strengthened Wynyard’s competitive advantage and global value proposition,” Richardson said, in reference to the heightened public sensitivities around the reach of national spy agencies into people’s seemingly personal information.
Wynyard software is in use by the London Metropolitan Police and the New Zealand and Australian police forces, global banks and corporations, and is making inroads into the huge US market, where its products have impressed the Department of Homeland Security.
The company has a strategic relationship with US defence contractor Northrop Grumman and has been signalling since last year it was planning a great leap forward strategy into the US in 2013 and 2014.