23/04/2008 - 22:00

Share registry seeks investors

23/04/2008 - 22:00

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Nedlands-based Advanced Share Registry Services Ltd is looking to grow its business in Australia and internationally after launching a $5 million initial public offering this week.

Nedlands-based Advanced Share Registry Services Ltd is looking to grow its business in Australia and internationally after launching a $5 million initial public offering this week.

Advanced has achieved rapid growth since its establishment 12 years ago and is hoping to make further inroads into a market dominated by Sydney-based Computershare Ltd.

The company has issued a prospectus offering 12.5 million shares at an issue price of 40 cents each to raise a minimum subscription of $5 million.

It will use $2 million to purchase the privately owned Advanced Share Registry Services business from its founder, Kim Chong, who will continue as managing director of the listed company.

The company will also issue 2.5 million shares to the vendors of the existing business.

Upon completion of the deal, Mr Chong will be the major shareholder in the listed company with an interest in 25.7 million shares, equivalent to 64.7 per cent.

The $5 million capital raising will also be used to fund a targeted infrastructure and staffing upgrade which will capitalise on recent upgrades to the company’s software platform.

About $159,000 will be used to fund the company’s relocation costs to its new premises on Stirling Highway in Nedlands.

Established in May 1996 with a starting base of six clients, the Advanced Share Registry Services business has grown to service more than 170 listed and unlisted companies throughout Australia and overseas, including Singapore and Malaysia.

Mr Chong, who began his career with Siemens Nixdorf in 1979 as a computer analyst before moving to Perth accounting firm Nelson Wheeler in 1985, said keeping abreast of technology was instrumental to the company’s growth.

“I think the IT highway and becoming web-based and using less paper, that’s been the key,” he told WA Business News.

“But we are very hands-on too. We have a lot of experience with share registry and IT and we’re determined to provide a first class service. We’re working hard to be responsive and care for our clients.”

In the past financial year, the company yielded a $2.4 million profit, which was a 42 per cent increase on the previous year.

Chaired by stockbroker Simon Cato, the company’s board believes that investors would be investing in a company with a history of solid growth and profit performance, an established client base and a strategy for expanding its services.

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