Telework boards the launchpad

By TREVOR WEBSTER
Updated:

 

Summer is here and there is no sign of the seasonal drop in companies floating on the stock market. Even more remarkable is that most newcomers are high-stepping, hi-tech companies in the internet, software, media and biotech sectors, undaunted by the collapse in 'new economy' shares.

The July launch pad is already crowded with a dozen hi-tech companies worth more than £8bn. The rush to market has accelerated with a trio of firms worth £440m signalling flotation plans.

The biggest is Telework, a software solutions company headed by Ian Lenagan, which is seeking £20m new money and a price tag of more than £200m. Its customers include British Airways, Vodafone and Lloyds TSB. It has been growing operating profits at 50% a year to reach £3m in the year to March. Lenagan will reveal a price range for the shares on 11 July.

Biotech newcomer Pharmagene, which tests products for giants SmithKline and Pfizer and develops its own drugs, plans to raise £30m and could be valued at £120m. Institutions own about 60% of the business and none is selling.

IFX Power, which supplies components to the electronics and hi-tech sectors, is seeking £27m of new money in a float that will value it at £117m. It makes profits of £4.4m on turnover of £59m.

This week's floaters are keen to distinguish themselves from dotcom companies and are established businesses with good profit prospects and firm ideas on how to use the money they raise. But also fuelling the rush to market is the enthusiastic reception that has greeted recent newcomers. Ten out of 12 of June's hi-tech floats have achieved healthy premiums in early stock market deals.

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