Shares in EROAD which were issued at $3 this morning on the New Zealand stock exchange have opened at $3.32, an 11% premium to the offer price.
The New Zealand Herald reported that EROAD raised more than $40 million through its NZX main board listing, which it says the software developer will use to fund growth in the USA as well as purchase potential acquisitions.
EROAD’s technology is used by transport firms to manage and pay road user charges as well as track fleets.
The company began operations in 2007 and it was the first to provide a nation-wide GPS-based road user charge system in New Zealand.
According to the Herald, EROAD has forecasted a loss of $1 million in 2015 as result of listing costs of $2 million, and it expects a $5.5 million profit in 2016.
