Datatec subsidiary Westcon Group is considering an initial public offering (IPO) in the US in the first half of this year.
Datatec has issued a notice warning its shareholders to exercise caution in their share dealings, since the group`s share price may be affected if the offering goes ahead.
Westcon, Datatec`s channel provider of networking and related products, first filed a registration statement with the US Securities and Regulation Commission in January 2001.
However, later that year the group put the Nasdaq listing on hold, saying it was waiting for stronger technology markets before going ahead.
The Nasdaq Composite Index has risen from a low of 1 129 points in October 2002 to more than 2 100 points in recent weeks, closer to the levels at which Westcon initially announced its IPO plans.
Westcon, with revenue of about $860 million for the six months to August last year, accounts for roughly 80% of Datatec`s total revenue.
Westcon`s gross margin for the period fell from 9% to 8.9%. Datatec CE Jens Montanana said this reflected continued pressure on global channel margins. Westcon reported earnings of $17.8 million before interest, tax, depreciation and amortisation - 9% down on the previous period.
The Datatec share closed at 1 704c on the JSE yesterday, up 69c or 4.2% from the previous close.
The share has put on about 361% since mid-April, when it recorded a 370c close.
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