$40m to aid Vista growth

Vista Group shares will sell at a confirmed offer price of $2.35, raising $40 million in new capital to fund acquisitions and development plans.

Existing shareholders will sell 22 million shares to take the total offer size to $92 million, retaining a 47% stake in the company.

Chairman Kirk Senior said the price placed an indicative market capitalisation on the company of $188 million, with a total of 80 million shares on offer.

Vista provides software to the film industry through six business units. The company has more than 250 staff across six offices in the New Zealand head office, the United States, the United Kingdom, the Netherlands, Australia and China.

Mr Senior said the group's business case resonated well with the investment community as reflected in the final price, which was just below the midpoint of the indicative range of $2.10 to $2.70 a share.

''At this price, the offer was more than two times covered - showing a strong level of support from investors. In particularly, they have demonstrated confidence in our management team and our strategy to become a broader global film industry software company,'' he said.

The offer opened yesterday and closes on August 1. Vista was expected to start trading on the NZX and ASX on August 11.

The local stock market is experiencing a flurry of listings after receiving a boost last year from the Government's partial privatisation of energy companies and a further sell-down of Air New Zealand. Last month, Gentrack Group, the utilities and airport software provider, and Serko, the travel booking system company, debuted.

Next week, IkeGPS Group, which sells a range of portable measuring devices, is due to list. Other upcoming July listings include Scales Corp, the fruit packager and exporter, and Metro Performance Glass, New Zealand's largest glass supplier.

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