ikeGPS confirms IPO - raising $25m

NZ Herald

10 Jun, 2014 10:10 PM2 mins to read

Glenn Milnes of ikeGPS with the firm's new Spike device, which attaches to a smartphone

New Zealand technology firm ikeGPS has confirmed it is planning an NZX main board listing that would raise up to $25 million of new capital and be used to fund growth, particularly in the United States.

The Wellington-based firm has developed a device that sells for more than $10,000 and is used by a range of businesses - including electricity utilities - to photograph, measure and GPS locate objects such as telegraph poles.

The company said $6 million of existing shares would be sold in conjunction with the issue of new shares.

The proposed share offer to the public and "selected institutional investors" was expected to be announced later this month, the firm said.

No details were given today on when the listing might take place, but sources have indicated that it's likely to go ahead next month.

Forsyth Barr and Deutsche Craigs are managing the offer.

"The net proceeds of the proposed offer would be used to recruit additional sales and marketing staff, develop new products and extensions of existing products and generally meet the costs associated with ike's growth plans," said ikeGPS managing director Glenn Milnes.

IkeGPS' shareholders include Jenny Morel's No8 Ventures, the government-backed New Zealand Venture Investment Fund, US conglomerate General Electric, founder Leon Toorenburg and Milnes.

The company, founded in 2003, has a licensing arrangement with GE Digital Energy, a subsidiary of General Electric, which is marketing the measurement device under the GE brand.

It has over 200 electric utility and engineering customers.

IkeGPS recently launched a new product, called Spike, which attaches to a smartphone or tablet computer and offers similar technology to the main device but at the more affordable price of about $500. Tradespeople such as painters could use the device to measure buildings when giving quotes.