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ERoad may raise $40m in IPO, seek NZX listing

ERoad, whose products allow transport companies to manage and pay road user charges and keep track pof their fleet, is planning to raise some $40 million in new capital via an initial public offering before seeking to list on the NZX.

The Auckland-based company expects to release a prospectus in mid-July and list on the NZX main board in mid-August, it said in a statement.

The company will use the funds "to accelerate its growth strategy for the ERoad electronic solution to manage and pay road user charges, support regulatory compliance and provide value-added commercial services to the heavy vehicle industry," it said.

It has hired First NZ Capital as lead manager and Deutsche Craigs as co-manager.

ERoad joins a swag of companies coming to market in one of the busiest periods for years in IPOs through the NZX.


Comments and questions

Valuation will be interesting.

A good niche to be in and a good business, but I think there is a competitor in NZ called International Telematics, which is also a NZ Company, which is two years ahead of eRoad in the US market - and probably a better bet. I understand that Linfox and Toll chose International Telematics ahead of eRoad product in NZ, and International Telematics have apparently a swag of US Companies already.

International telematics have a terrible system. It's called Ibright, it compares in no way to Eroad, they might be 2 years younger but from an operators perspective they are deifantely 2 years ahead.