New money sets Jade on listing course

By Chris Hutching

Friday 23rd November 2001

A move to recapitalise Jade software developer Aoraki Corporation with the issue of $12 million worth of convertible notes comes against a background of difficult trading as the company makes a transition from its old style of business.

In July, it turned off the last of its mainframe computer systems and most clients converted to the company's next generation software products based on its flagship Jade software that runs on PCs. The company carried the cost of conversion.

One of the two key investors who have taken up the convertible notes is US entrepreneur Roger Bhole, whose company has used Jade. He became interested in taking a stake and a position on the Aoraki board. The other investor was mezzanine financier i-cap, represented on the Aoraki board by Tony Hannon.

This came about through the connection Aoraki director Ruth Richardson has on the board of i-cap.

Other new investors include Active Equities, owned by former Brierley executives, and associates of Aoraki founder and chief executive Sir Gil Simpson.

In recent months PricewaterhouseCoopers has had an information memorandum in the market to source new capital up to $30 million but it appears Aoraki raised the money mostly through its own contacts.

Times have been tight for Aoraki as it seeks new markets and growth here and overseas. The $12.2 million will be used for development of software management products in healthcare, ports and student management.

Sir Gil owns 90% of Aoraki and the balance is held by company employees.

Market commentators said the company was believed to be worth about $100 million but a company spokesman said it had not been valued yet. Three are 350 employees and turnover is around $50 million but profitability has been elusive lately.

A listing on the New Zealand and possibly Australian stock exchanges is planned for about 18 months' time. The company recently launched a product called Jasper to allow tertiary institutions to manage student enrolments on the internet and it is already being used by several tertiary institutions.

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