Vista shares debut at $2.40 on NZX

  • 10/08/2014

By Suze Metherell

Shares of Vista Group International have risen 2.1 percent on their NZX debut, after the cinema software and analytics company raised $92 million in an initial public offering.

The shares first traded at $2.40, after an IPO at $2.35, giving the company a market capitalisation of $191.6m.

Some $51.7m of the funds raised went to existing owners who retained a 47 percent stake, while $40m in new capital was raised to drive its international growth plans.

The new capital will be used to repay debt and fund the acquisition of controlling stakes in two investments, Movio and MACCS, with about $15.4m set aside for future acquisitions and developments.

"The new capital structure will support our next chapter of growth to become the leading provider of software solutions to the wider film sector, including growing our global share of the large cinema circuit market (20+ screens)," founder and chief executive Murray Holdaway said in a statement.

"We have a great deal more growing to do in the exhibition space, not only in developing cinema markets such as China, Brazil, Russia and India, but in mature markets, where the total number of screens continues to grow."

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 this financial year is expected to grow to $49.9m and again to $61.5m in the 2015 financial year.

Vista is the eighth company to list on the NZX this year. ERoad, a logistics and fleet management company, is due to float on Friday.


source: newshub archive