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eisa plans $57m IPO

eisa plans $57m IPO

Emerging Internet player eisa Ltd (Edge Internet Services Australia) confirmed it planned to woo investment through a $57 million public float on Monday this week.

Some 57 million shares were to be offered at $1.00 each with 38 per cent of the company up for grabs while the remaining 62 per cent will remain with current shareholders.

Once cashed up, eisa intends to use the funds to build its ISP subscriber base from its current 60,000 to in excess of 200,000 within 18 months and drive its push into e-commerce.

In a prospectus available from broker Hartley Poynton, eisa forecasts 1999 revenues of $18.8 million, mainly from Internet access fees, with a loss of $5.43 million.

Revenues during the following 12 months to December 31, 2000 are predicted by eisa to grow three-fold to exceed $75 million with a post-tax profit of $3.8 million.

Bundled PC sales are expected to rise from $4.46 million to $30.9 million, while business communication services are expected to move from $2.18 million to $16.63 million.

Originating from boom PC assembler and distributor Edge Technology, eisa first came to prominence with its plans to sell cheap PCs bundled with long-term Internet access deals through Tandy Electronics.

Since then it has revealed it is developing an e-commerce initiative titled theshop.com.au and then made it clear it was planning an initial public offering (IPO).

Currently nominating August 20 as the closure date for its IPO, eisa will list on the ASX on August 31.


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