Sharechat Logo

Serko shares reach new record ahead of ASX secondary listing

Tuesday 1st May 2018

Text too small?

Serko shares hit a new record after the online travel booking software developer announced plans for a secondary listing on the Australian Securities Exchange next month as a means to broaden its investor base. 

The stock rose as high as $2.65 and was recently up 6.1 percent to $2.63, adding to the 13 percent gain so far this year. Serko was the best performer on the NZX in 2017, starting the year at 29 cents before closing out 2017 at $2.19. The company delivered a first-half profit, positive cash flow and stepped up plans to launch in North America, attracting investor support as it executed its plans successfully. 

The company now plans to join the ASX in June via a compliance listing, while keeping its primary listing on the NZX. Australia's stock market operator has made it easier for firms to trade through its platform with a foreign exempt listing status, and its deeper pool of investors and broader analyst coverage has lured several New Zealand firms to bypass the NZX in favour of the ASX. 

"While it is Serko’s intention to remain a New Zealand domiciled-business, committed to our New Zealand investor base, we recognise that listing on the ASX is a way of potentially accessing a broader pool of institutional and retail investors who wish to share in Serko’s success," chief executive Darrin Grafton said in a statement. "The bulk of Serko’s revenue comes from Australia, and we expect to see continued growth in that market even as we undertake our global expansion initiatives." 

Earlier this year, the company signed a binding strategic alliance with ATPI Group to deploy Serko's Zeno platform globally, including in the US, Europe, UK, and Asia for the next five years. The first customer site, being the UK, is scheduled to start in the middle of the year. 

Last month Serko appointed Tony D’Astolfo, a veteran executive of several online travel firms, as senior vice president of its North American operations. 

Serko raised $17 million of new capital in 2014 when it sold shares at $1.10 apiece in an initial public offering, with existing shareholders selling a further $5 million into the float, and went back to market in late 2015, raising $8.1 million from institutional and eligible investors at 84 cents apiece.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares rise; trading quiet ahead of upcoming earnings
NZ dollar firms against the Aussie heading into federal election
Fletcher-commissioned Deloitte report shows building material costs are low
RBNZ censures ANZ, prescribes risk capital calculation
RBNZ censures ANZ, prescribes risk capital calculation
SeaDragon shareholders back $4M injection to stave off liquidation
SeaDragon shareholders back $4M injection to stave off liquidation
Businesses get some reprieve in March quarter on cheaper prices
NZ manufacturing activity expands on month in April but down on year
Xero's CEO says it still has a cautious future in the US

IRG See IRG research reports