Enterprise application solution provider ERP.com is planning to list 110 million shares on the JSE on 16 September. The company, which has 85 staff members, delivers enterprise application solutions to the local and overseas market.
CEO Peter Forsyth says profit of R4.6 million is expected for the first year of operations, with a price-to-earnings ratio of 11.7, and he adds that the company is very bullish about an upturn in the enterprise resource planning (ERP) market after next year.
The US ERP services market is worth $16 billion and is projected to grow to $66 billion by 2003, he says.
"We plan to grow our resources to meet the demand anticipated next year, as currently all our consultants are deployed on existing long-term contracts."
ERP.com is expanding its e-commerce and business intelligence capabilities, as Forsyth believes these to be ERP areas that will attract considerable spending over the next two years.
"We are also very excited by the potential for applications hosting in South Africa and will be offering that as a solution to medium-sized businesses within two months," he says.
"We have aggressive plans for growth to meet the anticipated worldwide demand for skills and have identified strategic acquisitions both locally and overseas."
Forsyth says the company is working with customers which have implemented expensive solutions with other business partners but have not yet seen tangible economic benefit from their investment.
Ten million shares were allocated for private placement at 50c each. "We have received a great response from the institutions we have spoken to, resulting in a significantly oversubscribed private placement," he says.
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