Telecommunications Phonecard player Tel.Pacific to raise $5m in IPO | Phonecard player Tel.Pacific to raise $5m in IPO |
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| by Stuart Corner | |
| Monday, 28 May 2007 | |
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Tel.Pacific was founded in 1996 and was until recently both an ISP and a calling card company. However earlier this year it completed the sale of its ISP business to gNode Networks (As part of the agreement gNode has retained the rights to the name and use of the domain name for a period of 12 months: so www.telpacific.com.au appears to visitors to be one entity selling both Internet access and calling cards. Tel.Pacific COO Barry Chan told iTWire that the company's ISP arm, with about 40,000 was not sufficiently large to compete with the major players so the company had decided to focus on its card business where it is number two or three. For its card business the company in the 2007 financial year (to end 30 June 2007), the company is forecasting revenues of $36.3 million and $3.9 million of EBITDA.
Of the funds raised in the IPO, the company intends to use the majority ($3.25 million) for acquisitions. Tel.Pacific says that, "As the cost to entry into this market is relatively low, some smaller players have entered the market and established well in the ethnic markets. These players tend to focus their market in specific communities and use their specific networks to build distribution and sales." $750,000 is allocated for marketing and development and $500,000 to open a New Zealand office. |
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