Prism has described its listing on the JSE`s IT sector, scheduled for 13 October, as "an aggressive marketing campaign in a soft market".
Duncan Todd, Prism`s marketing director, says the company had built up a track record of solid, organic growth that will enable it to maintain a reputation within the market.
"It would be more expensive for us if we had to defer our acquisition plans and wait a few months," says Todd, noting that the dearth of quality stocks on the market will allow Prism to take up all the "analyst bandwidth".
Unlike almost any other recently listed company, Prism has said its listing is not about unlocking shareholder wealth. "We are hoping that the share will not spike, but rather remain steady at its fully-priced quota," he notes.
The capital raised by the listing will be used for two key acquisitions, one local and another in the UK, that are strategic to the company`s further growth. For the past five years Prism has focused on a purely organic growth, says Todd, but it has seen huge opportunity in acquisitions and needs to forge ahead with its plans.
Todd describes the Prism management team as "agile" with an "ability to think past the obvious". The company has a three-part strategy focusing on the physical, virtual and global aspect of secure payment transactions. He explains that product development and marketing takes place in a physical realm, to be taken to a virtual realm and then released globally.
Todd talks with passion about the company`s qualities. The difference between Prism and other companies, he says, is that "we grow earnings through invoices and not through deals". Another aspect that makes Prism stand out is that its software and hardware, based on global standards, are developed and manufactured in SA, which enables the company to offer its products at a more competitive price.
This is coupled by partnerships with international players such as MasterCard and Visa International, smart card and GSM specialist De la Rue, transactional terminal market leader VeriFone, and e-commerce software developer Trintech. In Africa Prism is making use of its 34% stake in black empowerment company Sub-Sahara Investments, which is actively pursuing a technology drive into other African countries including Ethiopia and Nigeria.
Obviously Prism must be an attractive acquisition target and Todd confirms that the company has resisted several attempts by top local IT players for complete or part acquisition. "We were nervous about diluting its focus in a large gorilla group," he explains.
In conclusion, Todd notes that IT in the 1980s was about building systems, while in the 1990s it is about automating internal systems. The next decade will focus on the customer and customer-centric solutions, and Todd believes Prism has positioned itself to ride this new wave.
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