25 Jun 2014

Serko debuts on the Stock Exchange

7:33 am on 25 June 2014

Corporate travel software firm Serko is the latest firm to debut on the Stock Exchange.

The company raised $22 million at $1.10 a share from its initial public offer, and was heavily oversubscribed.

Its stock opened at $1.13 a share at 11am on Tuesday, plunged at 91 cents each at one stage, before recovering slightly to end the session at 95 cents a piece.

Serko will use the money raised to expand its presence in the $US380 billion Asia Pacific corporate travel market.

The company is forecasting sales of $11 million and a bottomline loss of $6.5 million in the year to March 2015.

Serko said it should break even by the end of March 2016.

The company makes its money by collecting a transaction fee every time a booking is made as well as though subscription revenue.

Chief executive Darrin Grafton, is unperturbed by the volatile start.

He said investors understood the potential of its model, which allowed travel management firms like Flight Centre and organisations such as ANZ Bank better manage airline, hotel and rental car bookings for corporate travellers and staff.