Supply chain manager Mostert & Kleyn says it will list on the JSE on 26 May as Streamworks. At an issue price of 50c, the company will have a market capitilisation of R46 million.
The firm describes itself as a group of engineers with IT backgrounds, and it uses that engineering experience to provide customised solutions. "We link the physical tracking of stock to the front-end," says chief executive Russel Kleyn. "We bring the physical aspect into the nice clean world of IT." Many of the niche systems use Microsoft products, with the bridging done with code developed in-house.
Kleyn says Streamworks will treble its income to R4 million in the year to March 2000 and maintain a 45% growth rate thereafter. "We are currently working off a small base, so the expansion will be rapid to begin with, but we are trying to be realistic."
Only 20% of the shareholding will be immediately available for public trading, with the remaining 80% held by company directors and employees. Kleyn admits that the small volume may be a price inhibitor and prevent a spectacular listing, but he does not see that as a problem. "We are not listing to raise loads of cash and we are not expecting any fireworks."
The cash that is raised will be used to establish a national footprint, something Kleyn says is essential for growth. "The nature of our business is such that when a system goes down you have to fix it immediately," he says. "That requires offices around the country."
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