Australian-based audio technology company Lake Technology is set to list on the Australian Stock Exchange at 2pm this afternoon, after the initial public offering closed early and over-subscribed.
Brian Conolly, Lake's managing director, said the $6.5 million raised from the issue of 13 million shares would be spent on accelerating the company's commercialisation plans and investing in research and development.
"We're not sitting on our hands in this respect," Conolly said. "We want to continue with our efforts in promoting and selling chip technology. We're particularly excited about the Sharp Corporation deal, the first of our patented chip licences to be signed."
The Sharp deal will see Lake's patented VZ chip technology integrated into Sharp's own manufactured chips, used in a range of its consumer audio products.
Lake Technology started in 1991 in the field of high value-added acoustic research equipment, but now the company focuses on consumer electronics.
In addition to the Sharp product, Lake's technology is used in Dolby Headphone and Singapore Airlines' in-flight entertainment system.
Conolly would not speculate on how much the share price would rise from the opening price of 50 cents, but he said he is confident the company is headed in the right direction.
"We're working in the right areas where the profits are," Conolly said. "We're not an Internet company with no barriers, we're a digital signal processing company. I'm looking for the company to increase liquidity and shareholder value on a continued and long-term basis. I've got no fixed or particular feeling about what it does on the first day."
Co-founders and employees will retain 84 per cent of the company.