The Technology One float closed oversubscribed in the last week of November following considerable interest in the software developer's initial public offering (IPO).
Brisbane-based Technology One, which develops software systems for corporate, higher education and government users, plans to raise $27.85 million from its ASX float this month.
The underwriter of Technology One's IPO, Ord Minnett, reported interest from local financial institutions and retail investors, as well as overseas institutions.
`Its core business is software development which is a high-growth sector. Technology One is considered a growth stock with immense potential,' said Chris Smith, head of Ord Minnett's technology investment banking team.
Technology One's managing director, Adrian Di Marco, said interest in the company was driven by the fact that it was well placed for the future as it is both a product and a services company.
`We're one of the few Australian companies that has been able to successfully commercialise research and development into leading software products for the middle market,' Di Marco said.
Technology One's profit after tax has increased annually by 65 per cent in the past two years and has averaged 43 per cent per annum over the past seven years. For the 2000 financial year, the company has forecast revenues will rise to $31.1 million, while net profit will be up 49 per cent to $5.5 million.
The company intends to leverage this growth by expanding its market presence, as well as by investing further in research and development.
`Because we've done the hard yards with R&D and created a successful formula for products like Finance One and Student One, we have the potential to expand into new geographical territories while at the same time developing new products to bring to market,' Di Marco explained.
Technology One has already ann-ounced the opening of its first Hobart office, which will oversee the company's further expansion throughout Tasmania. The government specialist currently has 15 customers in the Tasmanian mid- market space, all of whom use its flagship product Finance One.
Apart from market expansion, the company will use the funds raised through listing to increase working capital and fund acquisitions.profileTechnology OneBased: BrisbaneFounded: 1987Products: Finance One, Student One, Retail OneStatus: Expected to list on ASX around December 8Capital raised: $27.85 millionShares issued: 27 million at $1 each and 1 million to employees at 85 cents eachOffices: Sydney, Melbourne, Adelaide, HobartCompetitors: The BOPS, mid-market financials specialists