IPO experts in hot demand as companies line up to list

and advisory community could possibly supply.”

New Zealand’s IPO pipeline has been building on the back of a rapidly rising stock market. The NZX-50 index has surged by 27.5 per cent since the start of last year. NZX chief executive Tim Bennett has said as many as 40 firms were considering listing.

Software companies Gentrack and Serko will IPO this month while other tech companies including ikeGPS, Fronde, Wherescape, Orion Health, Triplejump and Eroad are on the listing radar. Scales Corporation, a Christchurch-based fruit and vegetable marketer, has been widely speculated upon as a listing candidate and a $300 million float of Hirepool is expected this year.

John Moore, managing director of Miro Capital Advisory, said advisers could afford to be discerning in the current market.

“Why would you do a $5 million deal, and tie up your network, when you can do a $20 million, $50 million or greater [IPO]?” Moore said.

He said the quality of companies coming to market was better than during the mid-1980s IPO boom. “It’s not just the banks that are being selective — the market itself is being selective and the banks are responding to that,” he said. “I think the fact that not every company that wants to list can list is actually a good sign for the market. If you get to the point where you can float anything you’re in an IPO bubble and we’re not in an IPO bubble.”

More than $7 billion of new capital was listed through 10 NZX floats last year. Two NZX listings — Genesis Energy and education provider Intueri — have taken place this year.