IKE - IKE GPS Group

[Stockgathering]

Existing s/holders get "the opportunity to apply for up to a maximum of NZ$32,500 of new shares free of any brokerage, commission, and transaction costs."

It's going to be interesting to see what (if any) dilution takes place.

Remember the days when the CEO said, "we don't see any need to raise capital..." and "we expect to be approximately EBITDA break-even on a run rate basis within the second half of FY26."

S/holders  should be asking the CEO, "what's changed?"

I agree questions should be asked, last week's announcement said this.

 IKE remains in a very strong growth, operating and financial position, and the Company continues to execute successfully on its strategic plan.

I find it hard to reconcile a very strong financial position with a capital raise so soon after. And a very strong growth with 2025 year revenue about 20% less than 2 years prior.
I think Glen Miles is overly optimistic in all his communications.

[Greekwatchdog]

For Bars update

ikeGPS (IKE) has now committed to building two new subscription software modules at the direct request of its customer council—a group comprising more than a dozen major North American electric utilities. This follows the success of IKE PoleForeman, whose redevelopment also followed a council-led approach and now generates ~NZ$7m in ARR. We now incorporate preliminary, albeit conservative, assumptions into our estimates, reflecting a <24-month build-to-revenue window, and we see potential for these new products to be 2x–5x+ PoleForeman's ARR at maturity. The new modules will extend IKE's software capability into 'how utilities capture, digitise, and manage their distribution networks'. IKE is raising ~NZ$22m to ensure it can pursue the product build at pace. Our blended spot valuation lifts +28% to NZ$1.19.

What's changed?



Earnings: FY26/FY27/FY28 EBITDA estimates fall -NZ$0.5m/-NZ$1.6m/-NZ$3.3m respectively, but rise significantly longer term.
Spot valuation: Our blended spot valuation lifts +NZ$0.26 to NZ$1.19 on introducing a risk-weighted new product assessment.


Customer-led new product development


The new initiatives originated through IKE's customer council—now comprising 13 of the largest investor-owned utilities (IOUs) in the US—the same group whom were involved in redesigning PoleForeman. This ensures strong product–market fit and very likely accelerates uptake. Importantly, every council member who helped with PoleForeman is now a subscriber of the new product. We expect the same pull-through effect to occur again, given the alignment and council-led engagement.

Adjacent to PoleForeman, but structurally larger


We understand the new modules are designed to complement PoleForeman—with strong cross-sell applicability and a similar user base—but will also be capable of being sold standalone. While detail on the new products is limited (given obvious commercial sensitivity), we are bullish on the opportunity to develop further scale and deepen customer relationships. Unlike PoleForeman, which supports structural-pole analysis, we expect the new product to target a broader set of network design, optimisation workflows, and system-wide planning. Management has indicated the opportunity is large, and we consider this to be a NZ$20m–NZ$50m+ ARR opportunity, given broader applicability, significantly expanding IKE's addressable market among 6,000+ North American utilities.

Capital raise to support accelerated development and provide balance sheet flexibility


Management confirms that development has commenced with IKE's existing R&D team, aiming to deliver the product within 24 months at a cost of around NZ$11m. We believe this is a 'once-in-a-cycle opportunity' to scale the platform's scope, unlock operational leverage, and embed IKE more deeply in grid infrastructure markets. The company is raising ~NZ$22m to pursue building these products at pace. This may allow commercialisation ahead of our current estimate of FY28, while also enabling other work programmes to continue without delay.


Earnings revisions


We incorporate a preliminary view of the newly greenlit, council-backed products into our estimates, with a degree of conservatism. We assume R&D development occurs over FY26 and FY27 where we model an additional +NZ$11m in R&D, 80% capitalised. This is funded by the new ~NZ$22m capital raise, which we incorporate into our numbers. Revenue contribution is not expected until FY28. On this basis, our FY26/FY27/FY28 EBITDA estimates fall -NZ$0.5m/-NZ$1.6m/-NZ$3.3m respectively. However, these new product modules support longer-term margin expansion from significantly enhanced operating leverage. Our blended spot valuation lifts +28% to NZ$1.19 on these longer-term earnings upgrades. Our conservative new product assumptions—reflecting the limited public detail on the targeted application for obvious commercial sensitivity reasons—see these new council-backed modules reaching NZ$10m in revenue in FY29, broadly mirroring PoleForeman's 18-month post-launch trajectory (from its 3Q24 debut). We forecast these new products scaling revenue to >NZ$50m by FY35, supported by embedded pull-through from existing IKE customers and broader relevance across the ~6,000-utility North American market. Our assessed peer group is trading on 7.1x one-year forward EV/Sales, which would translate to ~NZ$1.16 on our estimates for IKE, assuming the same multiple, but before the ramp of the new products is seen.

[Left Field]

Thanks for sharing Greekwatchdog......much needed additional info IMO.

IKE's customer council is a great way to further enhance and  integrate their software with clients. Win, Win for all.

[Greekwatchdog]

iKE Successfully Completes A$18 Million Fully Underwritten PlacementKey Highlights

ikeGPS Group Limited (IKE / ikeGPS) (NZX/ASX: IKE) is pleased to announce the successful completion of its approximately A$18.0 million (approximately NZ$19.6 million) fully underwritten placement of new ordinary shares to sophisticated, professional and institutional investors that was announced on Thursday 10 July 2025 (Placement).

Pleasingly, the Placement was well supported with strong over-demand from existing investors as well as multiple new long only ASX institutional investors.
IKE will offer eligible xisting shareholders the opportunity to participate in a non-underwritten share purchase plan to raise up to A$2.0 million (approximately NZ$2.2 million) (SPP, and together with the Placement, the Equity Raising)

Proceeds from the Equity Raising will be used to fund new product development to maintain and extend IKE's market leadership, accelerate sales and marketing efforts, and provide balance sheet flexibility to execute on potential strategic bolt-on acquisition opportunities and general working capital.

IKE will develop two important new next-generation subscription product modules in collaboration with its extended customer-council, which are intended to extend IKE's value in how utilities and communications companies capture, digitize, and manage their distribution networks.Commenting on the successful Placement, IKE's Chief Executive Officer & Managing Director, Glenn Milnes said:

"We are extremely pleased by the level of support we have received from our existing shareholders as well as new institutional funds. This support places us in a strong position to execute on our accelerated growth plans, as detailed in our Investor Presentation provided to the NZX and ASX on 10 July 2025."Settlement of Placement SharesSettlement of new shares issued under the Placement is expected to occur on Monday, 21 July 2025, with allotment and commencement of trading of the new shares expected to occur on Tuesday, 22 July 2025. The new shares will rank equally with existing fully paid ordinary IKE shares from the date of issue.New shares under the Placement will be issued at a price per share of A$0.81 (NZ$0.88) (Offer Price).

The Placement is fully underwritten by Shaw and Partners Limited and Unified Capital Partners Pty Ltd who are acting as Joint Underwriters, Joint Lead Managers and Joint Bookrunners to the Placement. Chapman Tripp are acting as legal counsel to IKE in connection with the Equity Raising.Details of Share Purchase PlanFollowing the completion of the Placement, IKE will offer eligible existing shareholders the opportunity to participate in a non-underwritten SPP to raise up to A$2.0 million (approximately NZ$2.2 million). Under the SPP, eligible IKE shareholders, being shareholders who have a registered address in Australia and New Zealand on IKE's register at 7.00pm AEST / 9.00pm NZST on Wednesday, 9 July 2025, will have the opportunity to apply for up to a maximum of A$30,000 or NZ$32,500, respectively, of new shares free of any brokerage, commission, and transaction costs. New shares to be issued under the SPP will be issued at the Offer Price.New shares to be issued under the SPP will rank equally with existing IKE shares on issue and will be quoted on the NZX and ASX from the date of SPP allotment. If the SPP is oversubscribed, IKE may scale back applications at its discretion, by reference only to the number of fully paid ordinary shares held by eligible shareholders accepting the SPP at 7.00pm AEST / 9.00pm NZST on Wednesday, 9 July 2025.The Directors of the Company who are Eligible Shareholders intend to apply to fully participate in the SPP.Further details of the SPP will be set out in the SPP offer booklet, which will be released to the NZX and ASX on Wednesday, 16 July 2025. The closing date for applications by eligible shareholders is 7 August 2025.

[Minimoke]

Offer price $0.88. Current SP = $0.89 . At this level I wont be participating in capital raise.

Edit - But after the ASX opens and now at $1.00, I could well do!

[Greekwatchdog]

Hmm $0.98 on NZX

ASX
Last Price / Today's Change

$0.900 +$0.050 (5.882%)Volume

1,315,979Bid 

Offer Range

$0.910 - $0.945

[Greekwatchdog]

Offer price $0.88. Current SP = $0.89 . At this level I wont be participating in capital raise.

But after the ASX opens and now at $1.00, I could well do!

LOL.Strange day following IKE and PEB thats for sure

[Left Field]

Market seems to be agreeing with ForBars ( see post #376)

[Greekwatchdog]

Market seems to be agreeing with ForBars ( see post #376)

Starting to make me wonder what sort of takeover price from here would the board consider to forward offer shareholders to consider should one come.

[Left Field]

Starting to make me wonder what sort of takeover price from here would the board consider to forward offer shareholders to consider should one come.

I was mulling this too. Would have to be north of $2.00 surely!

[Greekwatchdog]

I was mulling this too. Would have to be north of $2.00 surely!

Well from memory For Bars said before all this $1.80+. Say who's to say closer to a $3? Will come down to timing

The positive thing out of this is that IKE's clients have asked for this extras so we know they will take it up, and how much work have the software designers done already?

[Left Field]

Strong support for IKE from the ASX today.....over 2.6 Mill shares traded at circa $NZ 1.01.

Great day for patient holders.

[Greekwatchdog]

So set the date for 1st quarter update. 22nd July.

[winner (n)]

So set the date for 1st quarter update. 22nd July.

Let's hope Q1 revenues are >$7.0m ..... anything less not that good

[Greekwatchdog]

So set the date for 1st quarter update. 22nd July.

Change of date, now 29th July