Telecommunications company Huge Group - which includes wholly-owned subsidiary TelePassport - listed amid a flurry of activity on the Johannesburg Alternative Exchange (AltX) this morning.
An hour-and-a-half after going live, the company's shares were trading about 20% higher, at R3.10, from an initial price of R2.50.
The amount of activity in the first hour of listing is "a good show of faith by the market" and is very heartening, says Huge Group financial director James Herbst.
The listing was necessitated by the consolidation that is ongoing in the telecommunications market, making it increasingly difficult to do business if a company is not listed, he notes.
The listing is also aimed at, among other things, raising capital for future acquisitions, which, in turn, will be aimed at obtaining a critical mass of customers.
"We are very acquisitive at the moment," says Herbst, noting that the company has been placed under cautionary as it is in the middle of negotiations that could have a material effect on the share price.
The listing saw 99 646 601 ordinary shares being offered to the public after 50 million shares were pre-placed in May, raising the R125 million needed to be able to list in a mere 48 hours.
Acquiring human capital
Herbst today confirmed that the listing is also a way to implement a share incentive scheme "in the foreseeable future".
"As we grow we will be looking at acquiring intellectual capital through share incentive schemes.'
In the last financial year, the company made R9.8 million profit and is projecting R22.4 million profit for the financial year ending February 2009.
According to Huge Group's abridged prospectus, the company is positioning itself to be the country's "leading managed telecoms company, managing voice calls between the different carriers, selecting appropriate routes and managing tariff alternatives".
Huge Group competitors include the likes of Altech Autopage, Nashua Reunert, Telemasters, Vox Telecoms, and unlisted Centracell.
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