DataPro`s upcoming listing on Monday has generated strong demand for the company`s shares, with a private placement 2.49 times over-subscribed.
DataPro, a telecommunications company and Internet service provider, is to be the first telecoms company to list on the JSE`s alternative exchange, AltX, when it makes its debut next week.
At an opening price of 55c a share, it is going to market with a capitalisation of R125 million.
"The telco space is a very sexy one at present," says AltX manager Noah Greenhill. "The listing is perfectly timed due to the deregulation of their industry."
Thirty percent of DataPro Group shares have been placed with empowerment companies. The largest shareholder, black-empowered private equity firm Vantage Capital Group, owns 23%.
"With the minister of communications` announcement of deregulation in the telecoms space, our carefully laid-out projections, short-term strategies and budgets outlined in our prospectus were turned 180-degrees," says DataPro MD Douglas Reed.
"Three days and many strategic sessions later, our excitement was uncontainable. The immediate implication to DataPro is a market that will increase 30-fold.
"We want to retain our independence for as long as possible, grow organically as well as by acquisition and roll-out our own wireless infrastructure to self-provision our own services. Our goal is to become the AltX star, an alternative telco stock and a very exciting growth stock."
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