Retail software designers and developers Peg Technology have announced plans to float the company on the ASX. According to the prospectus, a total of 24 million shares will be offered for subscription at $0.50 per share. As part of the float, venture capitalists and board members will maintain a 78.9 per cent share in the company.
The funds have been earmarked for further development in the domestic B2B and B2C market, with a focus on increased sales and marketing efforts. Peg Technology managing director Bruce Mackenzie described the company's position as on the cusp of a wave. "We've spent a lot on developing the software and now we need a lot of money to get it out to the market, which is the whole reason behind the float." Mackenzie reports that this wave is also expected to carry the company into the Asian retail market through new offices opening in Singapore, and to secure Peg Technology's position in the domestic market by establishing a stronger presence in Victoria. "We understand what the market is like in Sydney and NSW, so we are now trying to frame what the market is like in Victoria. In retail if you've got those two states well positioned you've got a good understanding of the national market."
According to Mackenzie, the company moved into the B2B market after realising it had the basis for the infrastructure with technology developed initially for Internet retail. "About June last year our B2C systems generated a lot of orders which were then faxed or phone ordered in to their suppliers so it was just a natural progression to develop the technology into the B2B market. B2B came out of B2C because it was exactly the same logical processes. We were already raising orders and had EDI experience."
Company sources describe its products as covering a wide range of retail applications from ordering and general online procurement to retail Web site software through to point-of-sale software and back office information systems. Mackenzie cites this level of integration together with Peg Technology's commitment to XML-based e-commerce applications as providing the company's unique focus and market advantage.
The planned emphasis on marketing and geographic spread brings with it an interest in finding resellers with a strong retail market presence, in a range of locations Mackenzie reports. "We're not looking for VARS with a lot of development and integration services, what we need is partners with good contacts and a clear understanding of the retail scene." He went on to single out multi-tier reseller channels as an area where Peg Technology is missing out on business.
Peg Technology's advance on Asian retail markets will be spearheaded with new offices in Singapore and a staff of eight, including two expat Australians. Mackenzie suggested that the Asian campaign will be boosted by a partnership with an unnamed local company described as having "a good profile in Singapore and a good footprint over Asia".