Open source software developer Alliance Data Corporation (ADC) is to list later this month on the JSE`s alternative exchange, AltX.
The company says in its abridged prospectus that the IT sector has since the early 1990s developed software solutions that did not live up to their promises. This, along with the downturn in the global economy, resulted in the postponement of IT procurement projects in the past four years.
"Market demand for innovative, cost-effective solutions provided the opportunity for ADC to create modularised computer software solutions which enable customers to enhance their existing IT infrastructure, an approach that benefits both the owners of legacy systems and customers requiring a simpler version of expensive computer solutions software."
The company was incorporated in 1997 and began trading in 2001 when the founders saw the opportunity to market a modular, open source software application catering for human resources, payroll and materials management systems for the mining industry.
With offices in Mpumalanga, the Free State and Western Cape, ADC has since expanded its product range to include time and attendance software and biometric security, as well as mobile software solutions to add value to the existing product range.
The company achieved revenue of R17.6 million and attributable earnings of R2.68 million in the 12 months to February last year, and according to the prospectus, ADC expects revenue of R20.6 million for the year to February 2005 and attributable earnings of R3.7 million.
This translates to headline earnings of 18.5c a share for the year to February 2005, compared with 13.4c previously.
The share placement, which is not being underwritten, is taking place at an offer price of 100c a share, with 2.5 million shares being offered. The placement opened yesterday and closes on 23 March, with the listing date expected to be 30 March.
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