Tech Pacific announces intention to float by year end

Tech Pacific announces intention to float by year end

Tech Pacific has confirmed it is in float discussions with investors from several major Australian financial institutions.

The distributor's chief executive, Shailendra Gupta, flew into Sydney from Singapore last week to get the ball rolling and said an initial public offering (IPO) on the Australian stock exchange could be issued before the end of the year.

Although he insisted the company was currently not for sale, Gupta said he expected to receive offers once the listing was finalised.

"At this stage we are considering various options regarding a listing in Australia," he said.

"When we formally decide to go ahead I am sure some buyers will jump into the fray and explore the possibilities, but Tech Pac is currently not for sale."

The Asia-Pacific region's largest IT distributor generated $1.4 billion in Australia last year from a total of $3 billion in annual revenues.

But with margins in the industry so tight, convincing the moneymen that the company represents a sound investment could still be a tough job. Gupta, however, remains confident.

"Our financial performance is really quite good," he said.

"The return on shareholder funds and working capital position makes it an extremely attractive proposition."

Tech Pacific is currently controlled by venture capitalist CVC Asia Pacific, which owns 58.5 per cent. Dutch-based Hagemeyer owns 31.5 per cent, with the remaining 10 per cent split between senior Tech Pac management.

Should a float be issued, all current shareholders stand to make a return on their investments.

Gupta said he expected the company's current senior management team, including Australian managing director, Kerry Baillie, would continue to run the business if it did go public.

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