itX targets acquisitions after announcing flotation plans

Local distributor itX Group has unveiled plans to float on the Australian Stock Exchange from the 11 April.

The firm is offering a total of 17.5 million shares at an offer price of $0.50 per share. Projected market capitalisation is $25 million.

itX’s floatation prospectus stated: “As part of its business strategy, the company may make acquisitions of or significant investments in, complementary companies, services, technologies and/or products.”

Dinshaw Katrak, non-executive chairman of itX Group, said in a statement: “itX has decided to list on the ASX to provide working capital, to fund the further growth of the business and to allow some of the existing shareholders to sell a part of their interest in the company.”

Katrak said after the flotation of the business itX will have no net debt and is expected to have sufficient cash balances to achieve its forecasts, to fund current growth plans and achieve its business objectives.

“The management team of itX have extensive experience in the IT industry and the board believes that itX is well positioned to grow its business, by both acquisition and organic growth,” added Katrak.