24 Jun 2014

ikeGPS issues prospectus for float

7:28 am on 24 June 2014

ikeGPS has raised $25 million from investors to expand its sales and marketing team in the United States, managing director Glenn Milnes says.

The Wellington-based hardware and software developer has just registered its prospectus for an upcoming share float on the stock exchange's main board next month.

ikeGPS is marketing two devices which allow users to capture measurements of buildings and other structures they have photographed, targetting electricity and engineering firms as well as architects.

Mr Milnes said a partnership agreement it had with the American conglomerate General Electric (GE) is behind its decision to list.

"It's part of the deal we launched as a GE-branded solution in January, which gives us a lot of validation to the electric utility market."

The company had decided to float as it was a business which had had venture capital funding and it felt it was now in a position to do a larger expansion round, he said.

"We're outlooking some very significant growth in sales and it's to known customers with a well-proven product in the market."

However, the company was not forecasting when it would be profitable.

"But profitability, ultimately, is an important part of our business. The next two years are about growth, and revenue growth."

The company will issue about 22.7 new shares at $1.10 a piece.

It is forecasting revenue to triple to $6.5 million in the current March financial year, and more than double to $14.3 million the year after.

But costs to expand the business will outstrip sales, resulting in losses of $5.3 million in the March 2015 year, and $5.8 million the year after.

Shares in the company will start trading on 23 July.