Vocus Communications’ decision to sell itself to an ASX-listed private equity firm and undergo a public offering appears to have paid off, with the initial prospectus closing oversubscribed.
In April, Vocus made the announcement that it had been sold to the Investec Wentworth Private Equity-managed First Opportunity Fund Limited (ASX:FOF) for $20 million. Shareholders of First Opportunity Fund voted in favour of the deal on 16 June.
The company will be renamed Vocus Communications Limited and has been seeking additional capital through a share raising and IPO underwritten by Investec. As part of the deal, Vocus shareholders receive a cash payout and ordinary shares in FOF.
Vocus shareholders also retain control of the company and were joined by former Unwired chief executive officer, David Spence, who took on the role of chairman.
In a statement, Vocus CEO, James Spenceley, described the oversubscription of the prospectus as an “excellent result, considering the state of the capital markets”.
“It shows that there is very strong support for our business model and team. There have been very few Telco/ISP listings in recent years and it is wonderful to see the offer close oversubscribed,” he said.
The company will start trading on the stock market under the ASX ticker, VOC, from 30 June.
Vocus reported $947,000 profit before tax for the 2009 financial year and is forecasting this to rise to $4.39 million this year.