Eroad shares in trading halt on NZX amid placement talk

EROAD chief executive Steven Newman.

Transport technology company Eroad shares are in a trading halt at the company's request, amid speculation that it could undertake a share placement.

The Australian Financial Review reported that Eroad - with the help of Bell Potter Securities and Canaccord Genuity - was preparing to put a $25 million proposed share placement to Australian funds, which would coincide with an ASX listing and a potential selldown from existing Kiwi investors to try to boost liquidity.

In August, Eroad said it had lodged an application with the ASX to list in Australia as a "foreign exempt listing" while retaining its NZX listing.

Chairman Graham Stuart said Eroad wanted to broaden the pool of institutional and retail investors on its share register.

"The board is confident and excited about the company's future prospects and regards an ASX listing as a further means to facilitate greater access to capital to fund future growth opportunities," he said at the time.

Shares in Eroad last traded at $4.35, having gained 52.6 per cent over the past 12 months.