Return of technology IPO
The company's financial investors are also considering selling their stakes, which would add another zł.30 million or more to the value of the share offering.
The firm, which has so far been primarily known as a hardware distributor, is looking to diversify into higher-margin segments of the market, says Jacek Studnicki, its chief executive and main shareholder. The firm will spend three quarters of the funds raised from the offer on the construction of its Regional Center for Satellite Operations. The center, built in co-operation with the military, would be based on Geographic Information Systems (GIS) technology transferred from the USA. Studnicki expects the new activity to bring in several tens of millions of złoty in annual revenues.
The shift in the profile of its activities has led to increased profitability. Indeed, last year Techmex made a zł.19 million profit on zł.406 million revenues, a twofold increase in profits on the previous year, despite seeing a 28 percent drop in revenues.
Michał Janik, an analyst at the BDM PKO BP brokerage house, says that the changing profile of operations makes the company more attractive to investors. Techmex has recently focused on the higher end of the hardware market, achieving a strong position on the market for handheld computers. It is also looking to enter other Central and Eastern European markets with its mobile computer solutions. Even more importantly, the company has diversified into services, and plans to spend some of the funds it raises by investing in the development of a network of outsourcing centers, including a call center.
The firm's previous attempt at an IPO in 2000 proved unsuccessful, as the offering came soon after the dotcom bubble burst, when technology stocks were no longer hot. The market, though, has recently experienced another mood swing, albeit of smaller proportions, with IT firms being among the highest growing stocks over the last few months. Janik concludes, therefore, that the share offer is priced "very moderately."
The offering's value will be increased by financial investors, who are thought likely to add around zł.30 million of their own shares. This has met with mixed reactions from analysts and investors, as it eliminates the risk of these financial institutions trying to realize their profits after the IPO by placing some of the shares on the public market, thus driving down the price. On the other hand, the higher value of the IPO will reduce the likelihood of unsatiated demand that would lead to price rises following the debut.
Despite this, the offer is expected to be oversubscribed, as sources close to the deal say that most of the stocks have already been booked.
The firm, which has so far been primarily known as a hardware distributor, is looking to diversify into higher-margin segments of the market, says Jacek Studnicki, its chief executive and main shareholder. The firm will spend three quarters of the funds raised from the offer on the construction of its Regional Center for Satellite Operations. The center, built in co-operation with the military, would be based on Geographic Information Systems (GIS) technology transferred from the USA. Studnicki expects the new activity to bring in several tens of millions of złoty in annual revenues.
The shift in the profile of its activities has led to increased profitability. Indeed, last year Techmex made a zł.19 million profit on zł.406 million revenues, a twofold increase in profits on the previous year, despite seeing a 28 percent drop in revenues.
Michał Janik, an analyst at the BDM PKO BP brokerage house, says that the changing profile of operations makes the company more attractive to investors. Techmex has recently focused on the higher end of the hardware market, achieving a strong position on the market for handheld computers. It is also looking to enter other Central and Eastern European markets with its mobile computer solutions. Even more importantly, the company has diversified into services, and plans to spend some of the funds it raises by investing in the development of a network of outsourcing centers, including a call center.
The firm's previous attempt at an IPO in 2000 proved unsuccessful, as the offering came soon after the dotcom bubble burst, when technology stocks were no longer hot. The market, though, has recently experienced another mood swing, albeit of smaller proportions, with IT firms being among the highest growing stocks over the last few months. Janik concludes, therefore, that the share offer is priced "very moderately."
The offering's value will be increased by financial investors, who are thought likely to add around zł.30 million of their own shares. This has met with mixed reactions from analysts and investors, as it eliminates the risk of these financial institutions trying to realize their profits after the IPO by placing some of the shares on the public market, thus driving down the price. On the other hand, the higher value of the IPO will reduce the likelihood of unsatiated demand that would lead to price rises following the debut.
Despite this, the offer is expected to be oversubscribed, as sources close to the deal say that most of the stocks have already been booked.
