Alliance Data Corporation (ADC), which debuted on the JSE`s AltX exchange today, was trading at 120c by late morning, 20c up on its placement price.
ADC, an open source software developer focused on the mining industry, has been operating since 1997.
Although he did not have precise details, CEO Eugene de Kok says the private placement of 2.5 million shares at 100c each was oversubscribed. The placement closed last week.
De Kok says the group listed to raise cash "but also to raise awareness and attract the right kind of partnerships going forward".
According to the group`s prospectus, one of the reasons for raising cash is to allow the company to "take advantage of acquisitive growth opportunities".
De Kok says he cannot comment in detail, but ADC has identified a synergistic acquisition opportunity and an announcement is expected soon.
ADC is also eyeing business opportunities in Africa and De Kok says the company will make a big push into the continent.
Future plans include expanding the customer base to include other vertical markets, gradually reducing exposure to the mining sector.
ADC, which trades under the JSE code ACD, achieved revenue of R17.6 million for the year to 28 February 2004, up from R15.65 million the previous year. A pre-tax profit of R3.83 million compared with a year-earlier profit of R3.17 million.
The group is forecasting gross revenue of R20.59 million for the year to February 2005 and R24.09 million for the following year. It expects pre-tax profit of R5.33 million and R7.11 million for the 2005 and 2006 financial years respectively.
ADC also expects to achieve earnings and headline earnings per share of 18.5c for the 2005 financial year and 22.1c for the following year.
By late morning, 6 000 shares had changed hands in four deals, leaving the share price at 120c, having touched 130c earlier in the day.
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