Software firm lists quietly

By Nicola Mawson, Contributing journalist

Johannesburg, 27 Nov 2006

Software firm SilverBridge Holdings, which provides software to the financial industry through its subsidiary SDT, this morning listed on the JSE's Alternative Exchange (AltX).

CEO Jaco Swanepoel says the 11-year-old firm sees the listing as a platform to enhance its business.

SilverBridge is a reverse listing that saw a consortium of SDT shareholders and other related and interested parties buy out Synergy - at that stage listed on the JSE's Development Capital Market - with the intention of listing on the AltX.

Today, SilverBridge is a holding company with SDT as its sole division. However, there are plans to change that, says executive director Freda du Toit. The listing is the start of a new era for the firm and gives it the opportunity to capitalise on its knowledge and experience to grow.

The company, which raised R4.6 million in an oversubscribed private placement, has about R17 million in cash and will use this to selectively acquire small firms as its seeks to expand locally and on the continent.

Growth opportunities

Du Toit says the changes in the financial services industry open up opportunities for the company. The local investigation into fees charged by banks is one of the challenges facing the industry.

In addition, government is challenging the financial services industry to provide services to the previously unbanked. This, says Du Toit, opens up opportunities for innovative thinking.

As more institutions invest funds, infrastructure on the continent will benefit, she says.

As a result of the foreseen increase in investment, the company aims to buy out niche firms that can add to its portfolio of offerings. These, says Du Toit, are not limited to software companies, but encompass any company with intellectual property that will benefit the company going forward.

Synergy's shares last traded on Friday at 40c each. These shares were then consolidated at a 10-to-one ratio, taking their worth up to R4.

However, despite buyers queuing up to offer between R2 and 40c a share before the JSE started trading, no shares had changed hands under the new code of SVB by 9.45am.