The listing enables the company to take advantage of significant business opportunities.Poynting Antennas is listing on the AltX on 9 July, in a move the company hopes will raise at least R20 million to fund international expansion and upgrade its R&D centre.
Andre Fourie, CEO of Poynting, says the company is listing in bad market conditions because its industry is thriving.
“Listing now will enable us to take advantage of significant business opportunities in the growing wireless telecommunications market, both locally and internationally.”
He says the wireless technology market is experiencing dramatic growth, with the cost, size and power requirements of wireless functions falling rapidly. “The success of mobile phones is fuelling the rise of wireless communications, promoting innovation and bringing down prices.”
The company is looking for investors for a private placement of 20 million to 24 million shares, at a prospective price of 100c-120c per share. This will translate into 22% of its shares being floated. Its managers will keep about three-quarters and 3% will be put into an empowerment trust for black employees.
Fourie adds that Poynting has partnered with several large international wireless manufacturers and this new business will contribute in part to FY2009 and more notably FY2010 revenue.
Revenue for the year ending June 2007 was R44 million. The company says forecast revenues for the years ending June 2008 and 2009 are R58 million and R102 million, respectively.
The company designs and manufactures antennas for improving cellphone reception, wireless Internet access, or vehicle tracking. According to Poynting, nearly half its revenue is from exports and particularly from the defence industry, as its antennas can be used to locate soldiers, find direction, and track military vehicles and devices.
Poynting`s local customers include Vodacom, MTN, Armscor, Matrix, iBurst and Tracker.