Serko rallies as inclusion on S&P/NZX50 index nears

A depressed aviation industry has not dampened demand for travel software company Serko. Photo / NZ Herald

A severely curtailed aviation industry has not dampened demand for shares in travel booking software company Serko, which will soon become part of the S&P/NZX50 index at the expense of Refining NZ.

In March, when the Covid-driven market meltdown was at its worst, Serko shares were trading at just 89 cents each.

Shares in Serko closed today at $4.26, up 33c or 8.4 per cent, on the back of the index change.

While still well short of its January high of $5.78, Serko's percentage gain made it one of the strongest NZX performers on the day.

Serko, which has a market capitalisation of $391m, will become part of the S&P/NZX50, S&P/NZX 50 Portfolio Index and the S&P/NZX MidCap Index, effective from September 21, S&P Dow Jones said.

Harbour Asset Management controls about 10 per cent of Serko's stock.

"In our view it is positioned to benefit from an eventual recovery in domestic travel in New Zealand, Australia and the United States," Harbour Asset senior portfolio manager Shane Solly said.

Auckland-based Serko was this year named PwC Hi-Tech Company of the Year, putting it in the same camp as previous winners Xero, Pushpay, and Fisher & Paykel Healthcare.

More than 6,000 corporate entities and travel management companies are served through Serko's platforms.

Serko, which is listed the ASX and NZX boards, employs 170 people worldwide.

Last year, US giant Booking.com took a 5 per cent stake for $17.5m as part of Serko's broader $40m raising.