Dynamic Visual Technologies Raises R12.5m Ahead of AltX Listing in South Africa
Software developer Dynamic Visual Technologies (DVT) has raised R12.5m through a private placement of its shares ahead of an AltX listing on November 6.
It released 12,5-million ordinary shares at R1 each in an oversubscribed offer. T hat cash will be injected into the company. Its private owners also raised R3.3m by selling some of their personal stakes.
The cash would mainly be used to fund potential acquisitions. Negotiations were already under way with two companies that had been identified as prospective targets, said founder and CEO Chris Wilkins. The cash should also provide working capital and finance product developments, while the listing would help it retain staff through a share incentive scheme.
DVT's main shareholder is the black-empowered technology company Cornastone, which bought 28,7% for R4,5m last year, giving it a black empowerment profile. Cornastone Consulting's CEO, Hamilton Ratshefola, serves as its chairman.
DVT was formed in Cape Town in 1999 by Wilkins and Clive Hubbard, and has made a profit every year. Its products include helpdesk and customer relationship management software. Wilkins said that, in its eight-year history, it had delivered more than 95% of its software development projects on time, within budget and according to requirements, compared with an industry average of 30%.
The company reported revenue of R44,4m for the year to February 28 and predicts R58,4m for next year and R76m in 2009. Attributable profit for this year was R2,8m. T he directors hope to grow that to R5,8m and R8,5m in the next two years.
Dividends are not on the agenda because the profits DVT generates would be reinvested to fund further growth, the directors said in the prelisting prospectus.