Hardware distributor, Dicker Data, has taken its first steps towards becoming a public company on the Australian Stock Exchange.
Managing director and co-owner, David Dicker, said it had been discussing a listing for several years. The stronger economic climate and returning market optimism made it a good time to take the plunge, he said.
“The idea all along has been to put a better value on the company – it’s better for all shareholders…it gives us more strength and credibility with our vendors and banks,” he told ARN. “This will make the valuation of the business a lot higher, which puts us in a better position as long as we perform.”
Initially, just 3 per cent of Dicker Data’s total share will be available through a Compliance Float, which requires at least 500 shareholders putting in $2000. Dicker estimated the company’s total value at about $35 million, while annual revenues are understood to be about $300m. Dicker, along with his former wife and co-business owner, Fiona Dicker, will retain the rest of the business.
“This is not about trying to raise working capital…or trying to sell equity. This is a matter of putting the company into a stronger position,” Dicker claimed. The plan was to sell additional shares further down the track, he said.
Dicker hoped to have the process complete by end of June, which would enable the distributor to announce its 2009/2010 financial year results. He declined to reveal how much the ASX listing process cost, but admitted a significant percentage of the $1m would go towards it.
Although Dicker claimed listing could potentially make Dicker Data a target for overseas firms interested in establishing a footing in Australia, he was adamant he wasn’t selling up.
“I’m not thinking of getting out – I like what we do, and I want to keep doing it,” he said. “This is the natural progression any business takes if it can make it.”
Simultaneously, Dicker Data is also building a new warehouse in the Sydney suburb of Kurnell, which it expects to move into in June. The facility will measure 4000sqm and include 3000sqm of warehouse space.
Dicker said there was an additional 13,000sqm available on the 6-hectare block of land to build on long-term. The distributor’s existing facility measures 1700sqm.