Wholesale telecommunications provider Vocus has announced its initial public offering has closed oversubscribed and the company will list on the Australian Securities Exchange as planned on 30 June.
Under the dealt, the First Opportunity Fund, which is managed by Investec Wentworth Private equity, will acquire Vocus for $20 million and then float the company on the ASX, raising $1 million in the process.
The company will begin trading as Vocus Communications when it hits the ASX board.
Vocus, which ranked sixth in the 2009 SmartCompany StartUp Awards, will maintain its current leadership along with the addition of two board members from Investec.
Chief executive James Spenceley said in a statement the company would be able to continue its growth due to the $1 million offering.
“This is an excellent result, considering the state of the capital markets. It shows that there is very strong support for our business model and team,” he said.
“There have been very few telco/ISP listings in recent years and it is wonderful to see the offer close oversubscribed.”
David Spence, former chief executive of OzEmail and managing director of Unwire will take on the role of chairman.
“My excitement in joining one of the most dynamic teams in this sector for the next step of their growth is clearly shared by the market.”
Vocus has recorded significant growth since its formation in 2008 by Spenceley and Paul McConnell, recording $5.2 million in revenue with a profit of $947,000 before tax during 2008-09.
Spenceley told SmartCompany in April the company’s core offering – establishing and maintaining telecommunications infrastructure – will stay the same. However, new markets including New Zealand and the Pacific Islands will provide new opportunities, and could be targets for future growth.
“The original Vocus shareholders still have control of the company. It’s very much still Vocus-controlled in terms of business and out network of customers, but we’re a publically-listed entity now and we certainly have shareholders, of which Investec will become a major one.,” he said at the time.
“We are really excited about the move. I think we’ve grown so quickly in the last two years, and I think to continue to grow we need to take that next step and access capital. We haven’t raised any money since starting the business, and it’s just really about growing further in the industry.”
He also said the money raised by the offering will allow the company to embark on projects it couldn’t have previously, due to the limitations of its size.
“We want to take our business from a medium-sized company in the telco space to a larger one, and we think this is the way to do that.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
Comments