Shares in Veda Group Ltd climbed as much as 42% on their ASX trading debut as investors bet demand for credit information from individuals and companies in Australia and New Zealand will grow.
At 1228 AEST Veda’s shares surged 42 cents, or 34%, to $1.67, after earlier rising as high as $1.78.
Veda’s IPO raised $341.1 million in October after the sale of 272.8 million shares at $1.25 each. The IPO was six times oversubscribed in a share sale managed by Citigroup Inc and UBS AG.
Pacific Equity Partners did not sell any of its shares in the company in the IPO. The private equity firm has a 63.5 per cent stake in Veda now worth $892.8 million based on the company’s market value of $1.4 billion.
Pacific Equity Partners will not sell shares in Veda potentially until after Veda’s 2014 financial year earnings are announced on the ASX.
Boutique advisory firm Highbury Partnership was the financial adviser to the company and to Pacific Equity Partners.
Veda generates revenue by aggregating proprietary and public information and using its own analysis to distribute such information to customers.
About 85 per cent of its revenue is so-called “click revenue” that is generated by charging a fee each time a customer accesses Veda’s products online.
The company also generates so-called “non-click revenue” from batch data sales, marketing services, subscriptions, licensing and consulting services.
Since 1993, Veda’s compound annual revenue growth has been 15%. In its 2013 financial year, the company’s earnings before interest, tax, depreciation and amortisation was $107 million.
Veda says it now has over 12,500 business customers and more than 470,000 consumer customers.