UPDATE: eServ enjoys ASX success
- 11 September, 2000 09:22
eServ CEO Ian Buddery is pleased and breathing easy after the company closed its first day of trading on Friday at $1.80 per share, up 20 cents from its opening price of $1.60.
"We expected it to hit the market at about $1.50 and close somewhere between $1.50-$2.00, so we were pretty much on the money," Buddery explained.
By the end of the day's trading, 4.2 million shares had changed hands.
Based on the issue price of $1.00 per share, the company was expecting to raise a $15 million "war chest".
Buddery said the money is to be used for acquisitions over the next 12 months, in addition to investing in product development.
The Sydney-based systems integrator is now looking for telecommunications companies with networking expertise to fuel its expansion plans in the US, Asia and Europe.
"To scale the company up we have to acquire, because the people we need are so highly specialist they just aren't sitting there in the market," he said.
With a current staff of 130, eServ is hiring two or three people a month to fuel company growth.
Buddery is now keen to return his focus to the company's core business of systems integration. Since making the decision to list in February he has sifted through a barrage of forms, prospectus and business plans, and given dozens of presentations to potential investors.
"Because of our international subsidiaries we had to (undertake) due diligence in the UK, Belgium, US, NZ and Hong Kong, as well as Australia. What we do is technically very complex so we have been driving a lot of discussions and presentations to help investors understand what the opportunities are."
Buddery has also used a lot of energy ensuring eServ attracts the right sort of investors.
"What you don't want is short-term peaks and troughs. You don't want your stocks traded by day traders as a volitile share," he said. "You want to target solid investors such as management fund and investment companies and secure their long term support for the stocks."