Inabox Group plans IPO of Telcoinabox Australia business

Offering to raise $2.9 million on the ASX

Inabox Group Limited, a holding company for telco wholesale aggregator, Telcoinabox, is planning an initial public offering (IPO) of $2.9 million on the Australian Stock Exchange.

The IPO includes the issue of about 2.4 million shares with an offer price of about $1.20 a share. The company could raise up to $500,000 if the IPO is oversubscribed.

Inabox was recently formed following the acquisition of the assets of telecommunications wholesale aggregator Telco In A Box.

The proceeds from the IPO will be used to fund the growth of the Telcoinabox business, expanding into new markets.

A portion of the funds will be used to acquire telecommunications wholesale aggregator in VoIP, iVox Pty Ltd, according to a company statement.

After the completion of the acquisition, Inabox will support over 200 telecommunications retail service providers (RSPs) Australia-wide.

The shares are anticipated to float on 26 June under the ASX trading symbol IAB.

Inabox has named Siimon Reynolds as non-executive chairman. Reynolds, an entrepreneur with over 25 years experience in media and marketing, will facilitate strategic marketing and the overall business growth.

Inabox is a non-carrier telecommunications wholesale aggregator that provides retail service providers with telecommunications products such as voice, mobile, data and back-office services. It also manages the purchasing relationships with major carriers, including Telstra, Optus, AAPT and NBNCo and the RSP resells to the consumer. Post-IPO, Inabox will service over 200 RSPs through-out Australia.

Inabox is a profitable business with no long term debt, according to the statement. Its pro forma net profit after tax was about $1 million for the first half 2013.

It plans to expand its customer base with new market entrants including large corporations and trusted retail brands. It is currently running a trial with an ASX-listed electricity retailer, according to a statement. In addition, Inabox is currently expanding into new customer channels to include IT companies, dealers, resellers and international carriers.