IT company Beget Holdings is planning to list on the JSE on 6 September, despite the current market weakness.
Beget develops and distributes software enabling its client base to combine database management with Internet thin client technology and link it to e-commerce, using the GSM cellular platform as the carrier.
The software allows the client to send SMS messages to its customer base, download information and conduct e-commerce transactions through a cellular phone.
The group operates through three subsidiaries: Orbes Dynamics, TM Commerce and Eze-Bill.
Beget MD Andr'e Potgieter says one of the reasons for the planned listing is the fact that the group deals with three international companies interested in licensing its software. "They want a company they can follow and invest into," he says.
"The second reason is that the market is reaching the bottom and this is a good time to list. As the market grows we can grow with it, rather than list at the top and go through all the falls."
A recent spate of delistings and management buyouts in the IT sector has not dampened Potgieter`s enthusiasm about the prospects of growth in the group`s area of focus.
Forty million shares at 10c each are being placed in a public offer which opened on 8 July and closes on 16 August. This follows a private placement of 20 million shares at 5c each.
Potgieter says that since Beget`s products have already been developed, the cash will be used mainly for marketing. "Some of it might also be used to acquire one or two little businesses. I don`t think we`ll expand internationally directly. We would rather license internationally than take intellectual capital out of the country."
He says Beget is profitable and is on track to achieve its forecasts. Turnover of R8 million is expected to rise to R17 million in the next financial year.
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