Runge makes debut

MINING consultancy and software developer Runge this morning made its debut on the Australian Securities Exchange.

Angie Tomlinson

The group listed its shares at $A1 each, raising $50.25 million on its initial public offering for a capitalisation of $124 million.

Runge this morning debuted at an 11 cent premium to its issue price of $1.

The float is the biggest for 2008 which has been marked by smaller, floundering listings.

The float has been flagged for some time for the company, which last year celebrated its 30th birthday.

Runge has experienced exponential growth over the past few years through acquisitions. Over the past 12 months it has acquired ResEval, GeoGas, Fractal, MineConsult and Minarco Asia Pacific.

Other subsidiary companies include South African operator MRM Mining Services and Pincock Allen & Holt in Denver, USA.

Through both organic growth and acquisitions Runge has made a large geological footprint, with offices across Australia, Asia, South Africa, South America, North America and England.

Market observers have been optimistic about the company's float which is backed by diversity in earnings. While coal makes up a large part of the company's revenue by commodity, Runge's revenue is split in half by its consulting and software products.

It also derives revenue from ongoing licensing fees which are largely immune from short-term downturns in commodity prices.

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